The Concept of Consistency Is Sacrificed in the Accounting for Which

question 150

Multiple Choice

The concept of consistency is sacrificed in the accounting for which of the following items?

• A) Change is the estimated salvage value of an asset
• B) Cumulative effect of change in accounting principle
• C) Discontinued operations
• D) Loss on disposal of a segment of a business

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Definitions:

Manufacturing Departments

Specific sections or divisions within a manufacturing facility, each dedicated to a particular stage or function in the production process.

Machine-Hours

A measure of production activity that indicates the total number of hours machines were in operation during a given period.

Job-Order Costing System

An accounting method used to assign costs directly to specific jobs or orders, tracking the expenses related to each job separately.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual units of production, based on estimated costs rather than actual costs.