Which of the Following Concepts or Principles Relates Most Directly

question 16

Multiple Choice

Which of the following concepts or principles relates most directly to reporting accounting changes and errors?

• A) Conservatism
• B) Consistency
• C) Objectivity
• D) Materiality

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Definitions:

Static Budget

A type of budget that remains unchanged over a period, regardless of any changes in business activity or operations.

Flexible Budget

A budget that adjusts or varies with changes in volume or activity, allowing for better cost control and planning.

Direct Labor

Direct Labor refers to the wages and benefits for employees directly involved in the production of goods, easily traceable to specific products or services.

Variable Electric Power

Electricity supply or rate that can fluctuate based on demand or time of use, often tied to renewable energy sources.