Answer
Some situations where comparison of different accounting methods may be problematic may include:
1. Last In First Out (LIFO) vs. First In First Out (FIFO) inventory methods.
2. Varying depreciation methods.
3. Varying accounting affiliated with long-term projects.
Work Step by Step
Different accounting methods use different assumptions and follow different accounting principles; for companies using different accounting methods, comparing data may be erroneous.
