Which of the following is a change in accounting principle?
A) a change in the estimated service life of machinery
B) a change from FIFO to weighted average for inventory costing
C) a change in the estimated allowance for bad debts
D) a change in estimated future warranty expense

Question

Quizplus · Accepted Answer

A change from one inventory costing method to another (such as from FIFO to weighted average) is considered a change in accounting principle. The other options are changes in accounting estimate which are accounted for differently.

Which of the Following Is a Change in Accounting Principle