08
AugSpecific identification method
It requires the specific tracking of every single unit purchased and sold. Specific identification inventory valuation is often used for more expensive items such as furniture or vehicles. It also is used when the products stored have widely different features and costs. This method is applicable only when a company can uniquely identify each unit… Continue reading Specific identification method
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07
AugWhat Is the Specific Identification Method for Inventory Costs?
In this article, we explain how the specific identification inventory method works and explore its advantages and disadvantages. We also provide a simple 5-step framework for implementing it, with real-world examples. If she had used FIFO inventory to calculate COGS and gross profit for this day of sales, she would calculate the total units sold… Continue reading What Is the Specific Identification Method for Inventory Costs?
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