A problem with the specific identification method is that
A)inventories can be reported at actual costs.
B)management can manipulate profit.
C)matching is not achieved.
D)lower of cost and net realizable value cannot be applied.

Question

Quizplus · Accepted Answer

The specific identification method allows management to select which specific items are sold, potentially manipulating profit by choosing items with higher or lower costs to affect the cost of goods sold and net income.

A Problem with the Specific Identification Method Is That