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 Slap Wraps bracelets.
C) seasonal items like snow blowers.
D) high-tech goods like cell phones.

Question

Quizplus · Accepted Answer

A company that sells household staples like laundry detergent is less likely to experience significant fluctuations in inventory value, as the demand for such goods is relatively stable. Therefore, there would be a lower chance of needing to adjust the ending inventory under the LCM rule.

An Adjustment to Ending Inventory Under the Lower of Cost