What Is the Essential Characteristic That Distinguishes a Change in Accounting

question 23

Essay

What is the essential characteristic that distinguishes a change in accounting policy from either an error correction or a change in estimate?

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Definitions:

JIT Processing

An inventory management approach emphasizing the minimization of inventory and the production of goods to meet demand precisely, avoiding excess production.

Quality Control

The procedures and processes used to ensure that a product or service meets a specified set of quality criteria or standards.

Inventory Storage

The process and facilities used to keep goods stocked and maintained until they are sold or distributed.

Equivalent Units

A concept in cost accounting that converts partially completed units of production into a number of fully completed units for inventory valuation.