An adjustment to ending inventory under the lower of cost or market (LCM)rule would be most likely to be recorded by a company that sells:
A)Plastic storage containers.
B)Paper clips.
C)Body lotion.
D)Designer clothes.

Question

Quizplus · Accepted Answer

Designer clothes are likely to have higher costs and greater fluctuations in market value, making it more likely for a company to adjust their ending inventory under the LCM rule.

An Adjustment to Ending Inventory Under the Lower of Cost