A Company Changes from Straight-Line to an Accelerated Method of Calculating

question 43

Multiple Choice

A company changes from straight-line to an accelerated method of calculating depreciation, which will be similar to the method used for tax purposes.The entry to record this change should include a

• A)credit to Accumulated Depreciation.
• B)debit to Retained Earnings in the amount of the difference on prior years.
• C)debit to Deferred Tax Asset.
• D)credit to Deferred Tax Liability.

Understand the concepts and calculations of predetermined overhead rates in a job-order costing system.

Apply predetermined overhead rates to calculate manufacturing overhead for specific jobs.

Calculate total job costs using job-order costing principles.

Understand the difference between plantwide and departmental predetermined overhead rates.

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Definitions:

Recency Effect

The psychological phenomenon where the most recently presented items or experiences are most likely to be remembered.

Short-term Storage

A part of the memory system where information is held temporarily for a short period, typically seconds to minutes.

Multiplication Tables

A mathematical table used to define a multiplication operation for an algebraic system, commonly taught as part of elementary education.

Photograph

An image created by light falling on a photosensitive surface, usually photographic film or an electronic sensor, such as a CCD or a CMOS chip.