Which one of the following inventory methods is often impractical to use?
A) Specific identification
B) Average cost
C) FIFO
D) All of these answer choices are practical to use

Question

Quizplus · Accepted Answer

Specific identification can be impractical to use for companies that have a large number of inventory items that are difficult to differentiate or track. It may also not be feasible for companies that deal with perishable or rapidly changing inventory. The other inventory methods (average cost, FIFO) are generally practical to use for most businesses.

Which One of the Following Inventory Methods Is Often Impractical