When applying the LCM,the following is true:
A)the inventory account remains at its original value.
B)a contra account to inventory is used.
C)COGS rises when ending inventory is reduced to market value.
D)LCM can only be applied to individual items.

Question

Quizplus · Accepted Answer

When ending inventory is reduced to market value under the LCM rule, the cost of goods sold (COGS) increases because the reduction in inventory value is recognized as an expense.

When Applying the LCM,the Following Is True