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.

---

Definitions:

Sample Mean

The average value of a subset of a larger population, used to estimate the population mean.

Finite Population Correction

A statistical adjustment applied when sampling without replacement from a finite population, to improve the accuracy of estimates like means and proportions.

Standard Error

A statistic that measures the dispersion of sample means around the population mean, often used to estimate the accuracy of a sample mean compared to the actual population mean.

Population Size

The total number of individuals or units in the group or area being studied.