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Specific identification for inventory Vs. FIFO, LIFO, WA

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13. FIFO, weighted average, and LIFO methods are often used instead of specific identification for inventory valuation purposes. Compare these methods with the specific identification method, discussing the theoretical propriety of each method in the determination of income and asset valuation.

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This post compares the specific identification for inventory valuation to other methods of inventory valuation such as FIFO, LIFO and weighted average. (Approx 300 words)

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FIFO, weighted average, and LIFO methods are often used instead of specific identification for inventory valuation purposes. Compare these methods with the specific identification method, discussing the theoretical propriety of each method in the determination of income and asset valuation.
Specific identification may cause artificial determination of income by selection of advantageously priced items to be sold. The FIFO, weighted average and LIFO methods does not suffer from this as we follow a ...

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