Which of the Following Is NOT Normally a Significant Accounting

question 24

Multiple Choice

Which of the following is NOT normally a significant accounting estimate involved in financial measurement?

• A) which product warranty claims will have to be paid
• B) what portion of credit sales will be uncollectable
• C) how many financial periods will benefit from research and development expenditure
• D) which period a fixed asset is depreciated over.

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Definitions:

Sales Volume

The number of units of a product sold in a given period, often used to measure the business activity level.

Property Taxes

Taxes levied by local governments on the value of real estate property owned by individuals or companies.

Sunk Cost

Expenses that are already spent and cannot be retrieved or changed by any future activities.

Opportunity Cost

The foregone benefit that would have been derived by choosing an alternative option.