Question

Which of the following are true of specific identification?

A. It matches actual costs with actual units sold.
B. It is commonly used for homogeneous goods.
C. It provides accurate tracking of inventory.
D. All of the above.

Answer 1

Specific identification is a method of inventory valuation that matches actual costs with actual units sold and provides accurate tracking of inventory.

Step-by-step explanation:

Specific identification refers to a method of inventory valuation where the actual costs of specific units sold are matched with the actual units sold. This method is commonly used for goods that are unique or have distinguishable characteristics. It provides accurate tracking of inventory because it allows for the identification and tracking of individual units.

Therefore, all of the given options are true for specific identification: A) It matches actual costs with actual units sold. B) It is commonly used for homogeneous goods. C) It provides accurate tracking of inventory.