The Specific Identification Method of Costing Inventories Is Used When

question 75

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 low cost homogeneous items.
• C) company sells large quantities of relatively low cost heterogeneous items.
• D) company sells a limited quantity of high-unit cost items.

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Definitions:

Maturity Value

The total amount payable to an investor at the end of a bond's term, including both the principal and the interest.

Bonds

Fixed-income investments representing loans made by an investor to a borrower, typically corporate or governmental.

Cash Proceeds

The total amount of cash received from the sale of goods, asset disposals, or financing transactions.

Controlling Investor

An investor or entity that holds a significant amount of voting stock in a company, allowing them to influence or control management decisions.