The specific identification inventory costing method:
A) Is more appropriate for a firm selling construction equipment than for a firm selling greeting cards
B) Measures the ending inventory at the actual prices of the specific units sold during the period
C) Uses expected future acquisition costs rather than historical costs to measure the ending inventory
D) Is not a generally accepted method of pricing inventories
E) None of the above

Question

Quizplus · Accepted Answer

The specific identification inventory costing method is more suitable for businesses with unique, high-value items like construction equipment, where each item can be distinctly identified and tracked. This method is less practical for items like greeting cards, which are typically homogeneous and sold in large quantities.

The Specific Identification Inventory Costing Method