Final answer:
The specific identification method of costing inventories tracks the actual physical flow of the goods available for sale.
Step-by-step explanation:
The statement is True. The specific identification method of costing inventories does track the actual physical flow of the goods available for sale. This method involves identifying the cost of each individual item in inventory and matching it with its corresponding sale.
For example, if a store sells three different types of shirts, each with a different cost, the specific identification method would track and allocate the cost of each shirt when it is sold, rather than using an average cost or first-in, first-out method.
By tracking the actual physical flow of goods, this method provides more accurate cost information and can be valuable when dealing with unique or expensive items.