Of the four companies listed below,which company is more likely to use specific identification to value their inventory and cost of goods sold?
A)Wedding cake baker
B)Dog biscuit manufacturer
C)Grocery store
D)Bulk candy merchandiser

Question

Quizplus · Accepted Answer

The specific identification method individually identifies and records the cost of each item sold as Cost of Goods Sold.This method requires accountants to keep track of the purchase cost of each item.Companies tend to use the specific identification method when accounting for individually expensive and unique items.Of the company's listed,the wedding cake baker would most likely use specific identification.

Of the Four Companies Listed Below,which Company Is More Likely