Asked by Natali Hernandez-Chavez on Jun 07, 2024

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The specific identification method of costing inventories tracks the actual physical flow of the goods available for sale.

Specific Identification Method

An inventory valuation method in which costs are assigned to individual items, used in situations where each item is distinguishable or significantly different from others.

Costing Inventories

The process of determining the value of inventory, including the costs associated with acquiring or producing the goods.

Physical Flow

The movement and tracking of physical goods and materials through the production process or supply chain.

  • Recognize the principles and effects of different inventory costing methods including LIFO, FIFO, and specific identification.
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MF
MENACatalyst FoundationJun 09, 2024
Final Answer :
True
Explanation :
The specific identification method involves identifying and tracking the cost of each specific unit of inventory, allowing for a precise calculation of the cost of goods sold and ending inventory. This method is based on actually identifying and tracking the flow of specific units of inventory.