Which of the Following Would Not Be Accounted for Using

question 16

Multiple Choice

Which of the following would not be accounted for using the retrospective approach?

• A) A change from LIFO to FIFO inventory costing.
• B) A change in accounting for long-term construction contracts by recognizing revenue over time rather than when the contract is completed.
• C) A change in depreciation methods.
• D) A change from the equity method of accounting for investments.

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Definitions:

Standard Labor Cost

The predetermined cost of labor expected under normal conditions, used for setting budgets and evaluating performance.

Payroll Taxes

Mandatory taxes withheld from an employee's earnings by an employer, which are then paid to government agencies.

Direct Labor Rate

The hourly wage paid to workers who are directly involved in the production of goods or services.

Standard Cost

A predetermined cost of manufacturing, selling, or any other operation under normal conditions.