Analysts must recognize that the use of the specific identification method to value inventory has a serious deficiency because it
A)allows manipulation of net income.
B)allows manipulation of period costs.
C)allows manipulation of selling expenses.
D)allows manipulation of administrative expenses.

Question

Quizplus · Accepted Answer

The specific identification method allows a company to choose which items of inventory to sell first, which can be manipulated to increase or decrease net income.

Analysts Must Recognize That the Use of the Specific Identification