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  3. Study Set
    Financial Accounting Study Set 18
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    Exam 7: Reporting and Interpreting Cost of Goods Sold and Inventory
  5. Question
    The Lower of Cost or Market (LCM) Rule Is Used
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The Lower of Cost or Market (LCM) Rule Is Used

Question 117

Question 117

True/False

The lower of cost or market (LCM) rule is used due to the conservatism constraint, and therefore an inventory calculation may result in a departure from the historical cost principle.

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