The specific identification formula of costing inventories is used when the
A) physical flow of units cannot be determined.
B) company sells large quantities of relatively homogeneous items.
C) company has sophisticated technology to account for its inventory.
D) company sells a small number of expensive, easily distinguishable items.

Question

Quizplus · Accepted Answer

The specific identification method is used when a company sells a small number of expensive, easily distinguishable items, allowing for precise tracking of each item's cost.

The Specific Identification Formula of Costing Inventories Is Used When