Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the lower-of-cost-or-market (lcm) approach was dev

The lower-of-cost-or-market (LCM) approach was developed to avoid reporting inventory at an amount greater than...

80.2K

Verified Solution

Question

Accounting

The lower-of-cost-or-market (LCM) approach was developed to avoid reporting inventory at an amount greater than the benefits it can provide. The LCM approach records losses in the period the value of the inventory drops below its cost instead of later in the period that the goods are ultimately sold. Is this a conservative or an aggressive approach? What does GAAP say about LCM?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Find the median of the group of data items 3 9 3 1 2 4...

Accounting
1.2K views

How do the tradeoffs, things that Trader Joe’s does not do,threaten or advance its...

Accounting
1.2K views

Widmer Watercraft’s predetermined overhead rate for the year2017 is 200% of direct labor. Information...

Electrical Engineering
1.2K views

Design an analog elliptic lowpass IIR filter with specifications Fp=10 kHz., Ap=1 dB, Fs=15 kHz. And...

Geometry
1.2K views

3 Given m ADC 168 m BDC 2x 4 m ADB 3 m BDC Find...

Calculus
1.2K views

ermine which of the following is equivalent to the given expression swer Cos 74 COS

Accounting
1.2K views

what is the revocation process of chegg based on cf score? when the account get...

Accounting
1.2K views

Question 1 (5 points) Boe Corps stockholders equity at December 31, 2014 is shown as...

Accounting
1.2K views

In 2021, Company D has taxable income of $35,700 prior to consideration of any net...

Accounting
1.2K views

Take me to the text Candice Inc. provides you with the following budgeted information for...

Accounting
1.2K views

Q1 Briefly the explain the principle of IAS 16 for the initial recognition of...

Accounting
1.2K views

Oswego Clay Pipe Company sold $46,100 of pipe to Southeast Water District #45 on April...