Which of the Following Typically Involves the Use of Non-GAAP

question 28

Multiple Choice

Which of the following typically involves the use of non-GAAP accounting?

• A) Strategic matching
• B) A change in accounting estimate that is fully disclosed
• C) Proforma earnings
• D) A change in accounting principle that is fully disclosed

---

Definitions:

Average Unit Cost

A costing method that calculates the cost per unit by dividing the total cost by the total number of units available for sale.

Perpetual Inventory System

A method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computer systems.

Cost of Goods Sold

Costs directly incurred from the production of goods a company offers for sale, including labor and material costs.

Average Cost Formulas

A method in inventory valuation that calculates the cost of goods sold based on the average cost of all similar items in inventory.