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In Business / College | 2025-07-06

The lower-of-cost-or-market rule for inventory is based on the accounting principle(s) of:
A. representational faithfulness.
B. relevance.
C. disclosure.
D. A and B.

Asked by ayaankendall

Answer (2)

The lower-of-cost-or-market (LCM) rule for inventory is based on the accounting principles of representational faithfulness and relevance. This rule ensures that inventory is reported at the lesser of its cost or market value, providing an accurate financial picture. Therefore, the answer is OD. A and B. ;

Answered by GinnyAnswer | 2025-07-06

The lower-of-cost-or-market rule is based on the accounting principles of representational faithfulness and relevance. This rule ensures that inventory is reported at the lower of its cost or market value, providing an accurate financial picture. Therefore, the answer is D. A and B.
;

Answered by Anonymous | 2025-08-01

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