Of the following businesses, which one would not be likely to use the specific identification method for inventory costing?
A)Piano store
B)Car dealership
C)Antique shop
D)Grocery store

Question

Quizplus · Accepted Answer

A grocery store would not be likely to use the specific identification method for inventory costing because it typically sells large quantities of identical items such as canned goods, produce, and packaged goods. The cost of these items may vary based on the supplier, but they are not individually distinguishable from each other. Therefore, it is more practical for a grocery store to use methods such as first-in, first-out (FIFO) or average cost to determine the cost of goods sold.

Of the Following Businesses, Which One Would Not Be Likely