Specific identification method would be appropriate inventory costing method for a grocery store chain.

Question

Quizplus · Accepted Answer

The specific identification method is appropriate for companies that have unique or high-value inventory items that can be specifically identified and tracked. It is not practical for a grocery store chain with thousands of inventory items that constantly change in price and quantity. Grocery stores typically use the FIFO (first-in, first-out) or weighted average costing methods for their inventory.

Specific Identification Method Would Be Appropriate Inventory Costing Method for a Grocery