Which of the following cost flow assumptions would be most appropriate when the inventory units are unique or costly?
A)FIFO
B)Specific identification
C)Just-in-time
D)Moving average

Question

Quizplus · Accepted Answer

When inventory units are unique or costly, specific identification method would be most appropriate as it allows companies to assign the actual cost of each unit sold to that unit, rather than an average cost like in moving average or a general assumption like in FIFO. Just-in-time is a production and inventory management philosophy, not a cost flow assumption.

Which of the Following Cost Flow Assumptions Would Be Most