A method of allocating merchandise cost requiring each item sold and each item remaining in inventory to be separately identified with respect to its purchase cost is called the

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The specific identification method requires each item sold and each item remaining in inventory to be separately identified with respect to its purchase cost. This method is typically used for high-value items that can be individually tracked, such as cars or jewelry. The other methods (FIFO, LIFO, and weighted-average) rely on assumptions and calculations to allocate merchandise costs, and do not require each item to be individually identified.

A Method of Allocating Merchandise Cost Requiring Each Item Sold