Accounting TermSpecific identificationMateriality conceptLast$-$in$,$ first$-$out $($LIFO$)$ConservatismConsistency principleWeighted$-$averageDisclosure principleFirst$-$in$,$ first$-$out $($FIFO$)$DefinitionBusinesses should use the same accounting methods from period to period.Calculates a weighted$-$average cost based on the cost of goods available for sale and the number of units available.Identifies exactly which inventory item was sold. Usually used for higher cost inventory.Principle that states significant items must conform to GAAP.Principle whose foundation is to exercise caution in reporting financial statement items.Requires that a company report enough information for outsiders to make knowledgeable decisions.Treats the most recent$/$newest purchases as the first units sold.Treats the oldest inventory purchases as the first units sold.