Chapter 9 Briefly explain the difference between Lower of Cost or Net Realizable Value (LCNRV) and Lower of Cost or Market (LCM) approaches to valuing inventory at the end of a reporting period. When should each be used? In addition, briefly explain how a material adjustment to inventory due to application of either T LCNRV or LCM should be reported in the financial statements. What ethical issues must be considered when valuing inventory? In your answer, please describe their impact on the financial statements