Accountıng I Deneme Sınavı Sorusu #1313842
In which method does the company know exactly which item was sold and exactly what the item cost?
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Average Cost Method |
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First-In, First-Out (FIFO) Method |
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Specific Identification Method |
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Last-In, First-Out (LIFO) Method |
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Weighted average cost |
Yanıt Açıklaması:
The specific identification method uses the specific cost of each inventory unit to determine ending inventory and cost of goods sold. Specific identification requires that companies keep records of the original cost of each individual inventory item. In the specific identification method, the company knows exactly which item was sold and exactly what the item cost.
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