The Specific Identification Method of Costing Inventory Would Be Unsuitable

question 55

Multiple Choice

The specific identification method of costing inventory would be unsuitable for which of the following?

• A) Works of art
• B) Motor vehicles
• C) Gold jewellery
• D) Petrol at a service station

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Definitions:

Shut Down Point

The point at which a company's revenue is exactly equal to its variable costs and it ceases operations to minimize losses.

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, that sells goods or services in exchange for money.

Price

The sum of money anticipated, needed, or provided as compensation for something.

Price of Rice

The cost at which rice is sold, influenced by factors such as supply, demand, quality, and market conditions.