In making comparisons of financial statements,it is desirable to compare data calculated using the same inventory costing methods.

Question

Quizplus · Accepted Answer

Comparing financial statements that use different inventory costing methods can be misleading and inaccurate, as it can distort the true profitability and asset values of a company. Therefore, it is important to ensure that the data being compared is calculated using the same inventory costing methods.

In Making Comparisons of Financial Statements,it Is Desirable to Compare