An Entity Can Change Its Accounting Policy

question 10

Multiple Choice

An entity can change its accounting policy:

• A)Never once the decision is made.
• B)Provided it can argue that the new method provides better information for users.
• C)Only with the approval of its auditors.
• D)As often as it likes.

---

Definitions:

Minimum Cost

The least possible expenditure required to achieve a particular objective or the production of goods and services.

Transportation Problem

A type of optimization problem in operations research that involves finding the most cost-effective way to distribute products from several suppliers to multiple consumers.

Supply

The total amount of a product or service available for purchase at any given time.

Demand

The desire and ability of consumers to purchase goods or services at a given price.