alleryWhich method assigns specific costs to specifically identified items of inventory?
AFIFO formula method
BWeighted average method (typical)
CAdjusted selling price
DSpecific identification method
Answer & Solution
Correct answer: D. Specific identification method
1. Specific identification attributes the actual purchase cost to each identifiable inventory unit.
2. Used for items that are not ordinarily interchangeable and are of high value.
3. FIFO and weighted average are cost formulas for interchangeable items.
_Source: ICAI BoS Foundation Paper 1, Ch 4 "Inventories", §5.1 (i)_
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