Question

Question 43 A store that sells expensive custom-made jewelry is most likely to determine its cost of goods sold using: Not yet answered Select one: Marked out of 1.00 a. Specific identification. Remove flag b. Average cost C. First-in, first-out d. Last-in, last-out

can anyone answer this??

Answer 1

The answer is

a.Specific Identification

Since the jewelry is custom made, the cost of goods sold must be identified with the good sold

As cost of each unit will be different.

Average cost method takes average cost into account

FIFO method states that goods purchased first will be sold first

LIFO method states that goods purchased later will be sold first