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 can allow management to manipulate net income by choosing which specific items to sell, thus affecting the cost of goods sold and net income.

The Specific Identification Formula of Inventory Costing