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.
Answer: c. The cost flow matches the physical flow.
Business
You might also like to view...
A market-based management business gives its dissatisfied customers as much attention as its "very satisfied" customers
Indicate whether the statement is true or false
Business
A detailed list of tasks to be accomplished while writing a report is called what?
A) Opening statement B) Statement of purpose C) Analytics D) Work plan E) Executive dashboard
Business