The inventory writedown that results from the application of the LCM rule is often hidden in the
A)selling expense.
B)inventory account.
C)cost of goods sold.
D)loss due to market decline of inventory.

Question

Quizplus · Accepted Answer

The inventory writedown from applying the Lower of Cost or Market (LCM) rule is typically recorded in the cost of goods sold. This adjustment reflects the reduced value of inventory and impacts the gross margin.

The Inventory Writedown That Results from the Application of the LCM