One argument against the use of the specific identification inventory method is
A) actual costs are matched against actual revenues.
B) estimated costs are matched against actual revenues.
C) the potential for the manipulation of net income by selecting costs to match against revenues.
D) that it is difficult to understand.

Question

Quizplus · Accepted Answer

The specific identification inventory method allows for the selection of specific costs to match with revenues, which can potentially be manipulated to influence net income. This method can be used to select higher or lower cost items to sell in order to achieve desired financial results, thus raising concerns about the manipulation of financial statements.

One Argument Against the Use of the Specific Identification Inventory