Which of the following does NOT correctly describe the specific identification cost formula?
A) This method is most appropriate when goods are not interchangeable.
B) This method is most appropriate when goods are interchangeable.
C) This method is generally used for expensive, one-of-a-kind merchandise.
D) This method is often used for merchandise with serial numbers such as automobiles.

Question

Quizplus · Accepted Answer

The specific identification cost formula is not appropriate when goods are interchangeable. This method involves identifying the actual cost of each unit sold, which is only possible when the items can be individually tracked and distinguished from one another. For interchangeable goods, other cost formulas such as FIFO or LIFO may be more practical.

Which of the Following Does NOT Correctly Describe the Specific