An adjustment to ending inventory under the lower of cost or market (LCM)rule would be least likely to be recorded by a company that sells:
A)a household staple like laundry detergent.
B)a fad product like bathing suits.
C)seasonal items like snow blowers.
D)high-tech goods like Personal Digital Assistants.

Question

Quizplus · Accepted Answer

Household staples like laundry detergent generally have stable and consistent prices, and are therefore less prone to fluctuations in market value. Thus, an adjustment to ending inventory under the LCM rule would be least likely required.

An Adjustment to Ending Inventory Under the Lower of Cost