Which of the Following Is an Example of a Change

question 37

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 capitalizing research and development costs to expensing such costs
• C) Change from the gross margin method to the retail method of estimating the ending inventory
• D) Change from the Weighted Average method to the FIFO inventory method
• E) Change in the estimate of future warranty costs

---

Definitions:

Willingness

The readiness or inclination of people to engage in a particular action, such as purchasing a product or adopting a service.

Ability To Pay

A concept referring to an individual's or entity's capacity to cover a financial obligation, often considered in tax policy and healthcare.

Latex Gloves

Elastic gloves made from natural rubber latex, commonly used for protection in medical and industrial settings.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price over a specified period.