Why are inventories valued at the lower-of-cost-or-market? What are the arguments against the use of the LCM

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Why are inventories valued at the lower-of-cost-or-market? What are the arguments against the use of the LCM method of valuing inventories?

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Intermediate Accounting

ISBN: 978-0470423684

13th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield

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Question Posted: Feb 19, 2011 02:24 AM

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Why are inventories valued at the lower-of-cost-or-market? What are the arguments against the use of the LCM

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The usual basis for carrying forward the inventory to the next period is cost Departure from cost is required however when the utility of the goods included in the inventory is less than their cost Th...View the full answer

Intermediate Accounting

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