Which of the Following Is an Example of a Change

question 127

Multiple Choice

Which of the following is an example of a change in accounting estimate?

• A)Change from the percentage-of-completion method to the completed-contract method of income recognition for long-term construction contracts
• B)Change from the Weighted Average method to the FIFO inventory method
• C)Change from the gross margin method to the retail method of estimating the ending inventory
• D)Change from capitalizing research and development costs to expensing such costs
• E)Change in the estimate of future warranty costs

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Definitions:

Specific Environment

Refers to the external forces within an industry or sector that directly impact an organization's operations and performance, which include customers, competitors, suppliers, and regulatory agencies.

Elements

Fundamental components or essential parts that make up a whole system, substance, or compound.

Organisational Culture

The set of underlying beliefs, values, practices, and social behaviors that characterizes an organization and influences its members' behavior and attitudes.

Importance

A measure of significance or relevance that a particular concept, object, or action holds in comparison to others.