A Change in the Estimated Useful Life of Equipment Requires

question 71

Multiple Choice

A change in the estimated useful life of equipment requires

• A) a retroactive change in the amount of depreciation recognized in previous years.
• B) that no change be made to depreciation calculations, so that depreciation expense amounts are comparable over the life of the asset.
• C) that the amount of depreciation expense be changed in the current and future years.
• D) that net income for the current year be increased.

---

Definitions:

Global Integration

The process of designing and implementing strategies to operate seamlessly across national borders, often involving the coordination of production, marketing, and R&D worldwide.

Globalization Of Production

The dispersal of production processes across different countries and regions, seeking to optimize costs, quality, and efficiency.

Raw Material Costs

The expenses associated with acquiring raw materials needed for production.

Iron Ore

A natural resource that is mined and processed to extract iron, used primarily in the production of steel.