The Lower-Of-Cost-Or-Market (LCM) Basis May Be Used with All of the Following

question 15

Multiple Choice

The lower-of-cost-or-market (LCM) basis may be used with all of the following methods except

• A) average cost.
• B) FIFO.
• C) LIFO.
• D) The LCM basis may be used with all of these.

---

Definitions:

Amendments

Formal changes or additions made to a document, law, or constitution.

Declaratory Judgment Statute

Legislation that allows a court to declare the rights, duties, or obligations of parties in a dispute without providing for enforcement.

Real Case

A situation or dispute involving actual events and parties, being adjudicated or capable of being adjudicated in a court of law.

Privity of Contract

A legal principle that only the parties involved in the contract have the obligation to fulfill it and the right to enforce it.