Which of the following accounting principle changes typically is reported prospectively? Changing inventory method from LIFO to FIFO. Changing inventory method from FIFO to LIFO. Adopting ASC topic 606 on revenue recognition on the standard's effective date.

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Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.