A problem with the specific identification formula is that
A)inventories can be reported at actual costs.
B)management can manipulate net income.
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 for the potential manipulation of net income by management, as they can choose which specific items are sold, affecting the cost of goods sold and thus net income.

A Problem with the Specific Identification Formula Is That