Which of the Following Is NOT an Example of Applying

question 144

Multiple Choice

Which of the following is NOT an example of applying conservatism in accounting?

• A)Recording contingent losses that are probable.
• B)Expensing all research and development costs as they are incurred.
• C)Using the lower of cost and net realizable value for inventory accounting.
• D)Increasing the useful life used in calculating depreciation.

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Definitions:

Variable Costs

Costs that change in proportion to the good or service that a business produces.

Per-unit Basis

A method of expressing costs, revenues, or other financial measures on a per unit of production, sale, or other relevant unit basis.

Level Of Activity

A measure of the volume of production, work, or business operations, often influencing the costs and expenses of a company.

Production Supervisor's Salary

The financial compensation awarded to an individual overseeing the work and activities within a manufacturing or production setting, ensuring efficiency and quality.