Which of the Following States That the Business Should Use

question 47

Multiple Choice

Which of the following states that the business should use the same accounting methods from period to period?

• A)Accounting conservatism
• B)Materiality concept
• C)Comparability principle
• D)Relevance principle

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Definitions:

Factory Labor

The workforce directly involved in converting raw materials into finished products, whose costs are accounted for as part of the overall production costs.

Process Cost System

An accounting system used to apply costs to similar products that are mass-produced in a continuous fashion, tracking costs across multiple production departments.

Manufacture of Cereal

The process of producing cereal products, from raw ingredients to the finished goods found in stores.

Printing of Wedding Invitations

The process and associated costs of creating and producing invitations for a wedding ceremony.