The inventory costing method that can be used only for goods that are NOT ordinarily interchangeable is the
A) LIFO method.
B) specific identification method.
C) weighted average cost method.
D) FIFO method.

Question

Quizplus · Accepted Answer

The specific identification method is used for goods that are unique or not interchangeable, such as artwork or custom-made products. This method assigns the actual cost of each unit sold to the corresponding units in inventory, rather than using an average or assumed cost. LIFO, FIFO, and weighted average cost methods are used for goods that are interchangeable, where it is difficult or impossible to match the cost of each unit sold with a specific unit in inventory.

The Inventory Costing Method That Can Be Used Only for Goods