The specific identification method of inventory costing
A) always maximizes a company's net income.
B) always minimizes a company's net income.
C) has no effect on a company's net income.
D) may enable management to manipulate net income.

Question

Quizplus · Accepted Answer

The specific identification method of inventory costing allows management to selectively choose which items are sold and which items are left in inventory, potentially manipulating net income. Therefore, it may not always accurately reflect the true cost of goods sold and may not always result in the highest or lowest net income.

The Specific Identification Method of Inventory Costing