During 2016,Hoffman Co

question 21

Multiple Choice

During 2016,Hoffman Co.decides to use FIFO to account for its inventory transactions.Previously,it had used LIFO.

• A)Hoffman is not required to make any accounting adjustments.
• B)Hoffman has made a change in accounting principle requiring retrospective adjustment.
• C)Hoffman has made a change in accounting principle requiring prospective application.
• D)Hoffman needs to correct an accounting error.

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Definitions:

Supply And Demand

Economic model describing the interaction between the availability of a product (supply) and the desire for that product (demand).

Static Time-Series Method

A forecasting technique that assumes past data patterns will continue into the future without adjusting for dynamic changes.

Historical Data

Past information and data used to analyze trends, forecast future events, and make informed decisions.

Highly Variable

Characterized by large changes or fluctuations, often unpredictably.