Gross margin using Specific Identification is a method of accounting that helps businesses track the profitability of individual items. This technique allows companies to identify the cost of each item precisely, as opposed to estimating the costs in an average manner. By doing this, companies can more easily understand their net profit on each product sold and adjust their pricing accordingly. What’s more, it also allows them to quickly identify which products are delivering the highest profit margins. Put simply, gross margin using Specific Identification provides businesses with valuable insights into their profits and product costs – ensuring they make the most of their resources.