Stockton Ltd

Multiple Choice

Stockton Ltd. changed its inventory system from FIFO to average cost. What type of accounting change does this represent?

A) A change in accounting estimate for which the financial statements for the prior periods included for comparative purposes do not need to be restated.
B) A change in accounting policy for which the financial statements for prior periods included for comparative purposes do not need to be restated.
C) A change in accounting policy for which the financial statements for prior periods included for comparative purposes should be restated.
D) A change in accounting estimate for which the financial statements for prior periods included for comparative purposes should be restated.