Which Statement Is Correct About the Specific Identification Method

question 129

Multiple Choice

Which statement is correct about the specific identification method?

• A)It is prone to earnings management if used for distinguishable items.
• B)This method is most appropriate for low-value inventory items.
• C)It is inexpensive to maintain inventory records under this method.
• D)This method is most appropriate for high-value inventory items.

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Definitions:

Situational Model

A theoretical framework that suggests behavior and outcomes are the result of interactions between an individual’s characteristics and the environmental or situational factors.

Participation

The act of taking part or being involved in an activity, process, or discussion, contributing to decision-making or achieving a common goal.

Employees

Individuals who are hired by an organization to do specific work in exchange for compensation.

Time Consuming

Describes tasks or activities that require a large amount of time to complete.