For which type of merchandise would a company most likely use the specific identification method of inventory costing?
A) Gasoline held in storage tanks
B) Cases of bottled water
C) Fine jeweler
D) Barbie dolls

Question

Quizplus · Accepted Answer

The specific identification method is used when each unit of inventory can be identified with a specific cost. This is most likely to be used for high-value items, such as fine jewelry, where the cost of each item can vary greatly. The other items listed are generally valued at a similar cost per unit, so a different costing method may be more appropriate.

For Which Type of Merchandise Would a Company Most Likely