Asked by Katelyn Goodridge on Apr 26, 2024
Verified
An advantage of the specific invoice method is that:
A) costs are matched with the sales they helped to produce.
B) it is simple to use if company has small amounts of high-cost goods.
C) flow of goods and flow of costs are the same.
D) All of the above is correct.
Specific Invoice Method
A method of inventory cost calculation that identifies and uses the actual cost of each specific item sold.
High-Cost Goods
High-cost goods are items that require a considerable amount of money to purchase due to their quality, rarity, or other factors.
Sales Production
The process or activity of generating goods and services to meet consumer demand and generate revenue.
- Learn about the varying approaches to valuing inventory, namely FIFO, LIFO, Specific Invoice, and Weighted-average.
- Characterize the strengths and weaknesses of diverse approaches to inventory valuation.
Verified Answer
Learning Objectives
- Learn about the varying approaches to valuing inventory, namely FIFO, LIFO, Specific Invoice, and Weighted-average.
- Characterize the strengths and weaknesses of diverse approaches to inventory valuation.
Related questions
The Inventory Method Where Unit Cost Is Found by Dividing ...
Calculate the Ending Inventory Under Each of the Following Methods ...
Under the Specific Invoice Method, Costs Are Matched with Individual ...
The _________ Method Assumes the Goods Purchased First Are Sold ...
An Advantage of the FIFO Method Is That ...