Question

An accrual was reasonably established at year-end for defective inventory from a manufacturing defect that could not be corrected. However, the accrual was underestimated by a significant amount.a. Is the scenario considered a principle change, an estimate change, or an error?

Name: an accrual was reasonably established at year end for defective inventory from a manufacturing defect that could not be corrected however the accrual was underestimated by a significant amou 40503
Uploaded: 2023-11-17T05:15:32-08:00
Duration: 1 min 4 s
Channel: Aarya B
Description: an accrual was reasonably established at year end for defective inventory from a manufacturing defect that could not be corrected however the accrual was underestimated by a significant amou 40503

          An accrual was reasonably established at year-end for defective inventory from a manufacturing defect that could not be corrected. However, the accrual was underestimated by a significant amount.a.     Is the scenario considered a principle change, an estimate change, or an error?

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Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

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11/17/2023

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An accrual was reasonably established at year-end for defective inventory from a manufacturing defect that could not be corrected. However, the accrual was underestimated by a significant amount.a. Is the scenario considered a principle change, an estimate change, or an error?