The specific identification method is more appropriate than a flow assumption method:
A) For a large inventory of identical low-priced items.
B) If each item in the inventory is unique.
C) If purchase costs are rising.
D) If purchase costs are falling.

Question

Quizplus · Accepted Answer

The specific identification method is appropriate when each item in the inventory is unique, making it possible to identify the exact cost of each item. This method would not be necessary or practical for a large inventory of identical low-priced items. The choice between flow assumption methods and specific identification may also be influenced by changes in purchase costs, but this factor alone is not sufficient to determine the appropriate method.

The Specific Identification Method Is More Appropriate Than a Flow