The specific identification method of inventory costing is recommended when a business deals in unique and high-priced inventory items.

Question

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The specific identification method involves identifying and tracking the cost of each individual item in inventory, which can be helpful for businesses dealing with unique or high-priced items. This method allows for accurate cost of goods sold calculations and can result in more precise inventory valuations on financial statements.

The Specific Identification Method of Inventory Costing Is Recommended When