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Commerce · Q327

Accounting

Graduate and Post Graduate · Commerce · question 327

Q327

In case goods are manufactured and segregated for specified consumers, the best method for valuation of inventory would be

A.
FIFO
B.
Simple average
C.
Base stock
D.
Specific identification method
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
In case goods are manufactured and segregated for specified consumers, the best method for valuation of inventory would be Specific identification method. Specific identification inventory valuation method is a way of keeping track of all items in an inventory individually.