The specific identification formula of inventory costing
A)always maximizes a company's net income.
B)always minimizes a company's net income.
C)has no effect on a company's net income.
D)may enable management to manipulate net income.

Question

Quizplus · Accepted Answer

The specific identification method of inventory costing allows management to choose which specific items are sold and which remain in inventory. This can enable management to manipulate net income by selecting items with higher or lower costs, affecting the cost of goods sold and thus the net income.

The Specific Identification Formula of Inventory Costing