Final answer:
The use of the specific identification method is false for low-cost, similar inventory items; it's intended for unique, high-cost items. Alternative methods like FIFO, LIFO, or weighted average cost are more practical for low-cost, similar inventories.
Step-by-step explanation:
The statement 'An appropriate use of the specific identification method is in accounting for low-cost, similar inventory items that are difficult to separately identify' is false. The specific identification method of inventory accounting is actually better suited for high-cost, unique items rather than low-cost, similar items. It involves tracking the cost of each individual item in inventory. Therefore, for low-cost, similar inventory items that are difficult to differentiate, methods like FIFO (First-In, First-Out), LIFO (Last-In, First-Out), or weighted average cost are more commonly used. These alternative methods provide practical ways to manage and value inventory when specific identification is neither feasible nor efficient.
For example, a car dealership would use specific identification for its vehicles because each car is unique and has a different cost. On the other hand, a grocery store would not use it for something like a bottle of ketchup, instead opting for one of the aforementioned alternatives.