Management may use the cost formula decision tree when determining which cost formula to use.If goods are not interchangeable,management's options are A)weighted-average. B)FIFO. C)Just-in-time. D)specific identification.

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Specific identification is the best choice when goods are not interchangeable because it allows for the actual cost of each individual unit to be assigned to its sale or use. This method is particularly useful when dealing with unique, high-value items such as artwork or jewelry. Weighted-average and FIFO assume that units are interchangeable, while just-in-time is a supply chain management technique and not a cost formula.

Management May Use the Cost Formula Decision Tree When Determining