If the write-off is occurring because of an industrywide downturn or market crash, it is useful to compare the percentages of the write-off with those taken by other companies in the industry.

Question

Quizplus · Accepted Answer

Comparing the percentages of write-offs taken by other companies in the industry can provide a better understanding of the severity of the situation and can help in identifying the root cause of the problem.

If the Write-Off Is Occurring Because of an Industrywide Downturn