Asked by Kristian Johnston on Jun 11, 2024
Verified
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.
Lower-of-cost-or-market
An accounting principle that values inventory at the lower of its historical cost or current market price.
Average Cost
A method of inventory valuation that calculates the cost of goods sold and ending inventory based on the weighted average of all units purchased.
- Assess and implement the lower-of-cost-or-market approach in relation to various inventory methodologies.
Verified Answer
MH
Maisyarah HawafiJun 15, 2024
Final Answer :
D
Explanation :
The LCM basis can be used with all three inventory costing methods, including average cost, FIFO, and LIFO. Therefore, D is the correct answer.
Learning Objectives
- Assess and implement the lower-of-cost-or-market approach in relation to various inventory methodologies.
Related questions
Barley Company Developed the Following Information About Its Inventories in ...
The Lower-Of-Cost-Or-Market Basis of Valuing Inventories Is an Example of ...
On the Basis of the Following Data, Determine the Value ...
Determine the Total Value of the Merchandise Using Net Realizable ...
Dalton Boats, Inc ...