A Problem with the Specific Identification Method Is That

question 230

Multiple Choice

A problem with the specific identification method is that

• A) inventories can be reported at actual costs.
• B) management can manipulate income.
• C) matching is not achieved.
• D) the lower-of-cost-or-net realizable value basis cannot be applied.

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Definitions:

Chance Behavior

Unpredictable actions or events that occur without a definitive pattern, often analyzed in probability and statistics.

Computerized Model

A digital simulation or representation of a real-world process, system, or concept designed to study its behavior and make predictions.

Mathematical Modeling

The process of creating a mathematical representation of a real-world situation or system to analyze and predict its behavior.

Lead Time

In purchasing systems, the time between recognition of the need for an order and receiving it; in production systems, it is the order, wait, move, queue, setup, and run times for each component.