Question 5 A change in inventory method that causes an increase to the balance of inventory would be recorded with a debit to inventory and a credit to cost of goods sold True False Question 6 The primary motivation behind the lower of cost or market (LCM) rule is conservatism. True False Question 8 For companies that use FIFO or average cost, inventory is valued at the lower of cost or net realizable value at the end of the reporting period. True False Question 9 A change from LIFO to any other inventory method is accounted for retrospectively. True False Question 10 A change from FIFO to LIFO does not need to be accounted for retrospectively. True False Click Submit