Is it necessary for a business to use the same method of computing depreciation for all classes of depreciable

Question

Is it necessary for a business to use the same method of computing depreciation for all classes of depreciable assets?

Answer 1

No. In financial accounting, a company may use straight line depreciation for some fixed assets, such as office equipment, but may employ a volume based methodology for others, such as a conveyor belt. A company may be REQUIRED to use a completely seperate methodology for these assets from a tax accounting perspective. Managerial accounting requires no consistency, but promotes a sensible approach to depreciation in allocation of costs.