Which of the Following Would Be Treated as a Prior

question 77

Multiple Choice

Which of the following would be treated as a prior period adjustment by Gold Corporation in 2015?

• A)In 2015,it was discovered that Gold Corporation recorded the purchase of a warehouse in 2012 as a debit to Repairs Expense.
• B)In 2015,Gold Corporation switched from the straight-line method of depreciation to another method of computing depreciation.
• C)In 2015,Gold Corporation's management decided that the estimated useful life of its computer equipment should be changed from five years to nine years.
• D)In 2015,Gold Corporation sold a segment of the business that it has operated since 2006.

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing more accurate insights into the actual costs of production or services.

Machine-Hours

A measure of production time in hours by machines, used as a basis for allocating manufacturing overhead in cost accounting.

Activity Rate

The cost driver rate used in activity-based costing to allocate costs to products or services based on the activities required for their production or delivery.

Materials Handling

The process of moving, protecting, storing, and controlling materials and products in any form throughout the manufacturing and distribution process.