The primary motivation behind the lower of cost or market (LCM) rule is conservatism.

Name: The primary motivation behind the lower of cost or market (LCM) rule is conservatism.
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The LCM rule is a conservative accounting principle that requires inventories to be stated at the lower of their cost or market value. This provides a more realistic and cautious approach to reporting the value of inventory on the balance sheet.

The Primary Motivation Behind the Lower of Cost or Market