The Lower-Of-Cost-Or-Market Value (LCM)rule ________

question 69

Multiple Choice

The lower-of-cost-or-market value (LCM) rule ________.

• A) replaces the use of specific identification, FIFO, LIFO, or weighted-average inventory costing methods.
• B) violates the conservatism principle
• C) requires that merchandise inventory be reported in the financial statements at the lower of the historical cost or the selling price of the inventory
• D) is an accounting issue separate from applying an inventory costing method

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