A method of valuing inventory based on the costs for each individual item is called the:
A)LIFO method.
B)average cost method.
C)specific identification method.
D)FIFO method.

Question

Quizplus · Accepted Answer

The specific identification method values inventory based on the actual cost for each individual item, making it the most accurate but also the most impractical and expensive method. LIFO, FIFO, and average cost methods rely on assumptions and averages, and may not reflect the true cost of each item.

A Method of Valuing Inventory Based on the Costs for Each