Companies in the same industry are required to use the same methods to value inventory and to depreciate similar assets.

Question

Quizplus · Accepted Answer

Although companies in the same industry may follow similar methods for valuing inventory and depreciating assets, they are not required to use the same methods. Each company has the flexibility to choose the method that best suits their business needs and accounting policies, as long as it follows generally accepted accounting principles (GAAP).

Companies in the Same Industry Are Required to Use the Same