Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 6 - Reporting and Analyzing Inventory - Questions: 9

Answer

Specification identification requires the company to keep records of the original cost of each individual inventory item.

Work Step by Step

The major advantage of this system is to get actual cost of goods sold, and accurate profits. The major advantage of this method is that in practice, it is difficult to follow. With the increase in variety, units, and turnover, it is rare to find.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.