Without knowing the identities of the company in question it is difficult to provide the perfect answer. On a search for companies that do not use a specific identification method for inventory costing, the following has been found.
Specific identification is considered a method for discovering the ending inventory cost. The method uses detailed physical count in a company to determine how many goods the company brought in on a specific date and which of that inventory remains at year end. The information is determined by the amounts of goods times the purchase cost at the purchase date to get the number of ending inventory cost.
This method is best for pricing goods in a way to get the best income. It can also be used to report lower income and reduce the taxes that need to be paid. Companies such as retail businesses, grocery stores, and other places with products to sell will use the specific identification method for inventory costing.
Therefore, we can conclude that any company listed that does not have inventory will not use the method. For example, an auto shop may use the method for inventory costing because they may have an inventory of car parts. A company though, that sells articles written for the specifications of the client will not have an inventory to count.
A services industry company such as insurance, health services, etc will not have inventory and therefore will not need an inventory costing system. If your list has any business on it that does not have inventory or have a lot of inventory, chances are that the company you need to choose as not using the specific identification method for inventory costing over those that have inventory.
Specific identification is considered a method for discovering the ending inventory cost. The method uses detailed physical count in a company to determine how many goods the company brought in on a specific date and which of that inventory remains at year end. The information is determined by the amounts of goods times the purchase cost at the purchase date to get the number of ending inventory cost.
This method is best for pricing goods in a way to get the best income. It can also be used to report lower income and reduce the taxes that need to be paid. Companies such as retail businesses, grocery stores, and other places with products to sell will use the specific identification method for inventory costing.
Therefore, we can conclude that any company listed that does not have inventory will not use the method. For example, an auto shop may use the method for inventory costing because they may have an inventory of car parts. A company though, that sells articles written for the specifications of the client will not have an inventory to count.
A services industry company such as insurance, health services, etc will not have inventory and therefore will not need an inventory costing system. If your list has any business on it that does not have inventory or have a lot of inventory, chances are that the company you need to choose as not using the specific identification method for inventory costing over those that have inventory.
