Some types of businesses that use the specific identification method are car dealerships, jewelry stores, art galleries and furniture stores.

Who uses the specific identification method?

The specific identification accounting method is best used for small business with low unit volumes. A company that might use the specific identification method would be a business that sells fine watches or an art gallery.

What is an example of specific identification method?

The specific identification method is used to track individual items of inventory. This method is applicable when individual items can be clearly identified, such as with a serial number, stamped receipt date, bar code, or RFID tag.