The International Accounting Standards Board requires the specific identification method in certain circumstances. Which of the following is likely to be a circumstance where the specific identification criteria can be met?
A) Unit price is low.
B) Inventory turnover is low.
C) Inventory quantities are large.
D) All of the choices are circumstances where the criteria are likely to be met.

Question

Quizplus · Accepted Answer

The specific identification method is most applicable when inventory turnover is low, meaning items are unique, expensive, or not frequently sold, allowing for the direct matching of costs to specific items sold. This method is less practical for large quantities of low-cost items.

The International Accounting Standards Board Requires the Specific Identification Method