Which of the following cost flow assumptions would most likely be used when inventory is expensive and unique?
A)FIFO
B)LIFO
C)Average cost
D)Specific identification

Question

Quizplus · Accepted Answer

When inventory is expensive and unique, specific identification is the best cost flow assumption as it allows for the tracking and valuation of each individual item in inventory. This method works well when the cost of each item can be easily identified and when the inventory is not too large.

Which of the Following Cost Flow Assumptions Would Most Likely