Which of the following businesses would most likely use the specific identification method to value inventory?
A)Department store
B)Food distributor
C)Car dealership
D)Electronic components manufacturer

Question

Quizplus · Accepted Answer

Car dealerships are more likely to use the specific identification method to value inventory because the cars have unique features and characteristics that make it easier to assign a specific cost to each unit. The other businesses listed are more likely to use other inventory valuation methods, such as FIFO or LIFO, which are more applicable to their respective industries.

Which of the Following Businesses Would Most Likely Use the Specific