Analysts must recognize that the use of the specific identification method to value inventory has a serious deficiency because it

A) allows manipulation of net income.
B) allows manipulation of period costs.
C) allows manipulation of selling expenses.
D) allows manipulation of administrative expenses.

Specific Identification Method

An inventory valuation method where costs are directly assigned to individual units of inventory, enabling precise profit margin calculations.

Inventory Valuation

The method used to determine the cost associated with an inventory at the end of a financial period, which affects cost of goods sold and, consequently, net income.

Net Income

The net income of a company following the deduction of all taxes and expenses from the gross revenue.