Which of the following is an example of a change in accounting principle? A. A change in inventory costing methods. B. A change in the estimated useful life of a depreciable asset. C. A change in the actuarial life expectancies of employees under a pension plan. D. Consolidating a new subsidiary.

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Business

Ariana Chaney

29 March, 20:32

Which of the following is an example of a change in accounting principle? A. A change in inventory costing methods. B. A change in the estimated useful life of a depreciable asset. C. A change in the actuarial life expectancies of employees under a pension plan. D. Consolidating a new subsidiary.

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Answers (1)

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Melody Curtis · Answer 1

A, A change in inventory costing methods

Explanation:

Inventory costing is the cost of inventory of an organisation. Inventory costing method is the method that an organisation uses to carry our its inventory costing or inventory valuation.

There are3 types of inventory costing methods and they are

1. LIFO/FIFO

2. Specific Identification

3. Weighted avaerge

The best way of costing inventory differs from organisation to organization but it is a very important part in an organization's finanacial statement.

Cheers.