Which method is used where the items carried in inventory are not fungible?
A) Perpetual inventory
B) Periodic inventory
C) Specific identification method
D) None of these

Question

Quizplus · Accepted Answer

The specific identification method is used when the items carried in inventory are not fungible, meaning that each item can be identified and tracked separately, such as in the case of expensive or unique items. This method involves assigning a specific cost to each item as it is sold, based on its actual cost to acquire or produce. The perpetual and periodic inventory methods are not directly related to the fungibility of inventory items, but rather refer to the frequency and method of tracking inventory levels and costs.

Which Method Is Used Where the Items Carried in Inventory