Which of the Following Would NOT Be Accounted for as a Change

question 55

Multiple Choice

Which of the following would NOT be accounted for as a change in accounting principle?

• A) Change from the first-in,first-out method to the last-in,first-out method of inventory pricing
• B) Change from the last-in,first-out method to the first-in,first-out method of inventory pricing
• C) Change from completed-contract accounting to percentage-of-completion
• D) Change from straight-line method to accelerated method of depreciation

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Definitions:

Monitoring Costs

Expenses associated with overseeing and controlling business operations or transactions to ensure compliance and efficiency.

Salaried Managers

Managers who are compensated with a fixed salary rather than hourly wages, regardless of the number of hours worked.

Franchise

A business model where a company (franchisor) allows an individual (franchisee) to operate a location using its brand, systems, and support in exchange for fees.

Aggressive Pricing

A competitive strategy involving setting lower prices than rivals to gain market share quickly.