Which of the Following Items Would Not Be Accounted for Under

question 64

Multiple Choice

Which of the following items would not be accounted for under current GAAP as a change in estimate?

• A) an increase in the expected life of a piece of manufacturing equipment
• B) a decrease in the estimated residual value of a delivery van
• C) a change from FIFO to LIFO for a small subsidiary
• D) an increase in defective items for the best selling video game

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Definitions:

Sales Manager

A person who directs an organization's sales team, oversees its operations, and strives to achieve sales targets.

Order-taker

An individual whose primary job responsibility is to take customer orders in a retail or B2B setting, often without the requirement to upsell.

CRM System

A set of information technology tools used to help companies stay connected to customers and prospects, streamline processes, and improve profitability.

CLV System

Customer Lifetime Value system, a metric that estimates the total revenue a business can expect from a single customer account throughout the business relationship.