The Specific Identification Method of Costing Inventories Is Used When

question 5

Multiple Choice

The specific identification method of costing inventories is used when the

• A)physical flow of units cannot be determined.
• B)company sells large quantities of relatively homogeneous items.
• C)company has sophisticated technology to account for its inventory.
• D)company sells a small number of expensive, easily distinguishable items.

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Definitions:

Imposition

The act of establishing something by authority, such as a tax, duty, or penalty.

Gifts

Items or funds given voluntarily without compensation by one party to another, often as a gesture of goodwill or to mark a special occasion.

Conditions

Terms or stipulations specified in a contract or agreement that must be fulfilled before certain obligations or rights become effective.

Bailee

A person or entity who is given possession but not ownership of an item for a particular purpose.