Objective 6 Matching: 1. 2. 3. Consigned inventory Consignee Consignor Lower-of-cost-or-market (LCM) method Net realizable value 4. 5. A. Market cost calculated as follows: Estimated selling price - Direct costs of disposal. B. Merchandise that is shipped by manufacturers to retailers who act as the manufacturer's selling agent. C. Retailer in a consigned inventory arrangement. D. The manufacturer who retains title until the goods are sold. E. Used to value the inventory when the market is lower than the purchase cost