A Change in Inventory Reporting from LIFO to FIFO Is

question 31

Multiple Choice

A change in inventory reporting from LIFO to FIFO is:

• A)An extraordinary item.
• B)A discontinued item.
• C)Not allowed once lower of cost or market is applied.
• D)Allowed,if it improves the usefulness of information in the financial statements.
• E)Not reported,as it is considered a change in accounting estimate.

---

Definitions:

Collective Agreement

A written contract negotiated through collective bargaining for labor between an employer and a union representing the employees.

Legal Bargaining Agent

A representative, often a union, designated to negotiate employment terms on behalf of a group of employees.

Bargaining Agent Status

The official recognition of a union as the representative of a group of employees for the purposes of collective bargaining.

Certification

The process of formally validating the qualifications, competence, or authority of an individual or organization in a specific area.