specific identification

specific identification definition - business

specific identification

A method of inventory control in which each inventory item is identified for purposes of cost and sales. Specific identification is generally used on large, relatively valuable items such as vehicles or construction equipment that can have a major impact on a taxpayer's reported income. Individual investors often use specific identification when selling securities.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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