Which one of the following is not a disadvantage of the specific identification method of inventory costing?
A)It allows manipulation of profits.
B)It does not match expenses against revenues.
C)It is too expensive to use in complex manufacturing situations.
D)It is only practical where units are costly and easily distinguishable.

Question

Quizplus · Accepted Answer

The specific identification method does match expenses against revenues by identifying the cost of the specific item sold. This method is precise in matching the cost of the item sold with the revenue it generates, which is not a disadvantage.

Which One of the Following Is Not a Disadvantage of the Specific