Which of the following method is suitable for calculating the cost of inventory when actual costs of individual units of merchandise can be determined from the accounting records?
A)FIFO Method
B)LIFO Method
C)Specific Identification Method
D)Average Method

Question

Quizplus · Accepted Answer

The Specific Identification Method is suitable for calculating the cost of inventory when actual costs of individual units of merchandise can be determined from the accounting records. This method tracks the cost of each specific item in inventory and is often used for items that are not interchangeable, such as cars or real estate.

Which of the Following Method Is Suitable for Calculating the Cost