Asked by Carter Brown on Jul 22, 2024
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The specific identification method of inventory valuation is desirable when a company sells a large number of low-unit cost items.
Specific Identification Method
An inventory costing method where specific costs are attached to individual units of inventory, typically used for unique or high-value items.
Low-Unit Cost Items
Products or goods that have a relatively low cost per unit, making them inexpensive to purchase in large quantities.
Inventory Valuation
The method used to calculate the cost of goods sold and the ending inventory, factoring in purchases and any changes in costs or quantities.
- Become familiar with the essentials and effects of diverse inventory costing methods such as LIFO, FIFO, and specific identification.
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Learning Objectives
- Become familiar with the essentials and effects of diverse inventory costing methods such as LIFO, FIFO, and specific identification.
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