A Company Can Change to a New Accounting Principle If

question 122

Multiple Choice

A company can change to a new accounting principle if management can justify that the change will result in

• A)less likelihood of clerical errors.
• B)higher net income.
• C)lower net income for tax purposes.
• D)more relevant information for decision-making.

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Definitions:

Customer Support Department

A specialized unit within a company that handles inquiries, complaints, and other interactions with customers to facilitate satisfaction and resolve issues.

Time-Driven Activity-Based Costing

An accounting method that assigns costs to products or services based on the actual time activities consume, improving accuracy in costing.

Capacity Analysis

A technique used to determine the production capacity needed by an organization to meet changing demands for its products.

Customer Service Department

A specialized division within a company that handles inquiries, resolves issues, and maintains positive relationships with customers.