Which of the Following Is a Reason Why the Specific

question 145

Multiple Choice

Which of the following is a reason why the specific identification method may be considered ideal for assigning costs to inventory and cost of goods sold?

• A) The potential for manipulation of net income is reduced.
• B) There is no arbitrary allocation of costs.
• C) The cost flow matches the physical flow.
• D) Able to use on all types of inventory.