When inventories are written down due to the application of the lower of cost and net realizable value rule,which of the following is usually increased?

Question

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When inventories are written down, cost of goods sold (COGS) is usually increased. This is because the write-down reduces the value of the inventory, which in turn increases the expense of COGS. This is done in accordance with the lower of cost and net realizable value rule, which requires companies to report inventories at the lower of cost or net realizable value.

When Inventories Are Written Down Due to the Application of the Lower