Multiple Select Question

Select all that apply

Which of the following statements are true? $($Check all that apply.$)$

Using a different inventory accounting method leads to reporting a different amount for cost of goods sold.

GAAP require that all companies in the same industry use the same method of accounting for inventory.

Managers can choose the method of accounting for inventory cost $($i$.$e$.,$ FIFO, LIFO, etc.$)$ that best fits their business.

It doesn't matter which method you use to account for inventory as long as it mimics the actual physical flow of goods.

Need help? Review these concept resources.

Read About the Concept