Subaru Added the XV Model to Its Line of Automobiles

question 8

Multiple Choice

Subaru added the XV model to its line of automobiles.This was

• A) reactive change.
• B) unfreezing.
• C) planned change.
• D) refreezing.
• E) a change agent.

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Definitions:

Lower of Cost

An accounting principle that adjusts the value of an inventory or asset to the lower of its historical cost or its market value.

Net Realizable Value

The estimated selling price of goods minus the costs of their sale or disposal.

Conservatism Constraint

An accounting principle that provides guidance for uncertain conditions, advising to recognize expenses and liabilities sooner rather than later.

Historical Cost Principle

An accounting principle that states that assets should be recorded and reported at their original purchase cost.