Which costing method can only be used when it is possible to identify units as coming from specific purchases?
A)Specific identification
B)FIFO
C)Average-cost
D)LIFO

Question

Quizplus · Accepted Answer

The specific identification method can only be used when units can be identified as coming from specific purchases. This method is ideal for companies that have unique items with high-value costs, such as art galleries or jewelry stores, but may not be practical for companies with large volumes of inventory or interchangeable products. Therefore, this is the best choice for the given scenario where specific purchases have to be identified.

Which Costing Method Can Only Be Used When It Is