A company changes from capitalizing and amortizing preproduction costs to recording them as an expense when incurred, because future benefits associated with those costs have become doubtful.This accounting change should be recognized as a
A)change in accounting estimate
B)change in accounting principle
C)change in reporting entity
D)correction of an error

Question

Quizplus · Accepted Answer

The Answer of A company changes from capitalizing and amortizing preproduction costs to recording them as an expense when incurred, because future benefits associated with those costs have become doubtful.This accounting change should be recognized as a
A)change in accounting estimate
B)change in accounting principle
C)change in reporting entity
D)correction of an error

A Company Changes from Capitalizing and Amortizing Preproduction Costs to Recording