Asked by Tashae Thomas on Jun 06, 2024
Verified
A company should use the specific invoice method to value items that are in large quantities and are low-cost goods.
Specific Invoice Method
A method used in accounting to record the cost of goods sold based on the specific cost of individual items.
Large Quantities
Refers to the purchasing or production of goods in bulk amounts, often at a reduced cost per unit.
Low-Cost Goods
Products that are sold at relatively low prices compared to other similar products in the market.
- Identify the benefits and drawbacks of various methods for valuing inventory.
Verified Answer
SY
Sinem Y?ld?zJun 07, 2024
Final Answer :
False
Explanation :
The specific invoice method is more suitable for high-value, unique items rather than large quantities of low-cost goods. For large quantities of low-cost goods, methods like FIFO, LIFO, or weighted average cost are more appropriate.
Learning Objectives
- Identify the benefits and drawbacks of various methods for valuing inventory.