When Following U

Multiple Choice

When following U.S. GAAP, which of the following statements is not correct regarding the LCM rule for inventory?

A) The individual-item approach to LCM is the most conservative because it results in the largest write-down.
B) U.S. GAAP specifies a preference for using the individual-item approach.
C) Firms can apply the LCM rule for inventory to the aggregate inventory, product lines, or individual items in inventory.
D) U.S. GAAP does not specify a preference for the different methods of applying the lower-of-cost-or-market rule.