Under the specific-identification method, the flow of costs through the accounting records will:
A)be nearly the opposite of the physical flow of goods through the business.
B)closely match the physical flow of goods through the business.
C)exactly match the physical flow of goods through the business.
D)have no relationship to the physical flow of goods through the business.

Question

Quizplus · Accepted Answer

The specific-identification method tracks the actual cost of each specific item sold, so the cost flow exactly matches the physical flow of goods.

Under the Specific-Identification Method, the Flow of Costs Through the Accounting