The Specific Identification Method of Inventory Costing

question 67

Multiple Choice

The specific identification method of inventory costing

• A) always maximizes a company's net income.
• B) always minimizes a company's net income.
• C) has no effect on a company's net income.
• D) may enable management to manipulate net income.

---

Definitions:

Capital Inputs

The physical assets, financial resources, and human capital used in the production of goods and services.

Optimal Use

The most efficient, effective, or desirable utilization of resources or goods to achieve the best outcome or return.

Interest Rate

The percentage of a loan charged as cost to the borrower for the use of the money.

Capital Projects

Long-term investments made by companies or governments to create, improve, or maintain physical assets.