In which of these three inventory cost flow assumptions is it important to determine the actual cost of a particular inventory item being sold in order to determine cost of goods sold?

Question

Quizplus · Accepted Answer

In specific cost identification, the actual cost of a particular inventory item being sold is necessary to determine the cost of goods sold. In weighted average and FIFO, the calculation of the cost of goods sold is based on average or assumed cost, rather than specific cost identification.

In Which of These Three Inventory Cost Flow Assumptions Is