Which of the following statements is true regarding inventory cost formulas?
A) A company may use more than one cost formula concurrently.
B) A company must comply with the method specified by industry standards.
C) A company must use the same method for domestic and foreign operations.
D) A company may never change its inventory cost formula once it has chosen a method.

Question

Quizplus · Accepted Answer

A company may use more than one cost formula concurrently for different types of inventory or in different business segments, as long as the method is consistently applied to each inventory type or segment.

Which of the Following Statements Is True Regarding Inventory Cost