When an Inventory Costing Formula Is Changed, the Change Is

question 5

Multiple Choice

When an inventory costing formula is changed, the change is required to be applied:

• A) prospectively and the adjustment taken through the current profit or loss;
• B) retrospectively and the adjustment taken through the opening balance of retained earnings;
• C) prospectively and the current period adjustment recognised directly in equity;
• D) retrospectively and the adjustment recognised as an extraordinary gain or loss.

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Definitions:

Sartorius

The sartorius is a long, thin, superficial muscle that runs down the length of the thigh in the human body, known for being the longest muscle.

Thorax Muscle

Refers to the muscles located in the chest region that assist with the breathing process and support upper body movements.

Intercostal

Pertaining to the muscles and nerves situated between the ribs, involved in the mechanics of breathing.

Serratus Anterior

A muscle located on the side of the chest, playing a significant role in the movement of the shoulder blade.