The specific identification method of inventory cost formula must be used
A) for goods that are produced and segregated for specific projects.
B) when goods are not ordinarily interchangeable.
C) when high priced goods are purchased.
D) for goods that are produced and segregated for specific projects, and/or when goods are not ordinarily interchangeable.

Question

Quizplus · Accepted Answer

The specific identification method is used when goods are produced and segregated for specific projects and/or when goods are not ordinarily interchangeable, as it allows for precise tracking of individual items.

The Specific Identification Method of Inventory Cost Formula Must Be