Question

The inventory costing method that matches each unit of inventory with its actual cost is referred to as the _____ method. Weighted-average. Specific identification. Actual cost. Matching unit.

Answer 1

Specific identification

Step-by-step explanation:

Under the specific identification method of inventory valuation, each unit of inventory is valued separately, so that each unit cost is charged separately at the time of sales.

This method is generally used by industries where valuation is different for different units, for example: Jewelry

Weighted average assigns an average rate to the entire inventory for per unit charge.

Under actual cost cost is assigned to group of inventories brought together.

Therefore, correct option is

Specific Identification