Which of the following inventory costing methods most closely matches the cost flow with the goods flow?
A) Periodic FIFO
B) Specific identification
C) Periodic LIFO
D) Weighted average
E) None of the above

Question

Quizplus · Accepted Answer

Specific identification most closely matches the cost flow with the goods flow because it tracks the actual cost of specific items sold and those remaining in inventory, directly linking the physical flow of goods with their cost flow.

Which of the Following Inventory Costing Methods Most Closely Matches