Which one of the following inventory methods is often impractical to use?
A) Specific identification
B) LIFO
C) FIFO
D) Average cost

Question

Quizplus · Accepted Answer

Specific identification involves tracking the cost of each individual item in inventory. This method can become impractical to use if a company has a large number of individual items with varying costs, making it difficult and time-consuming to track each item's cost. Instead, companies often choose to use methods such as FIFO or Average cost, which are simpler and more practical to implement.

Which One of the Following Inventory Methods Is Often Impractical