ECONOMICS

Detailed explanation-1: -Specific identification is a method of finding out ending inventory cost that requires a detailed physical count. The specific identification costing method attaches cost to an identifiable unit of inventory.

Detailed explanation-2: -The specific identification method relates to inventory valuation, specifically keeping track of each specific item in inventory and assigning costs individually instead of grouping items together. It is useful and usable when a company is able to identify, mark, and track each item or unit in its inventory.

Detailed explanation-3: -The Last In, First Out (LIFO) method “LIFO is when you attribute specific costs to individual items or batches of items based on their actual cost, and you reduce your cost as you sell items with the last items added being removed from inventory first.

Detailed explanation-4: -The specific identification method is a way to calculate cost of goods sold and ending inventory by tracking every single unit of inventory and adjusting the balances when inventory is sold and when it is purchased.

Detailed explanation-5: -Specific Identification Cost/Unit Cost or Actual Cost: This method of valuation is adopted where each item of inventories and its actual cost is identifiable. It attributes certain specific costs to the identified items of inventory where each such item and its cost is identifiable.