- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 2. Analyzing Income Statements
- Subject 2. Expense Recognition - Inventory
CFA Practice Question
Which method matches the physical flow of the specific inventory items sold to their actual historical cost?
B. FIFO
C. Weighted average method
D. LIFO
A. Specific identification method
B. FIFO
C. Weighted average method
D. LIFO
Correct Answer: A
User Contributed Comments 6
| User | Comment |
|---|---|
| weehongw | what is a specific identification method? |
| reganbaha | it's the method where you specifically identify things |
| gill15 | What's specific identification method? Method where you specifically identify things. Funniest answer EVER. |
| vatsal92 | Haha @reganbaha! Specific identification method is the method in which unit sold is matched with unit's cost. |
| Inaganti6 | If you got this question wrong there's no hope for you. |
| ashish100 | ^ don't listen to this guy. |