When inventories are written down due to the application of the lower of cost or market (LCM)rule,which of the following is usually increased?

Question

Quizplus · Accepted Answer

When inventories are written down due to the application of the lower of cost or market (LCM) rule, the cost of goods sold is usually increased. This is because the adjustment reduces the value of the inventory, which in turn increases the cost of the goods that have been sold.

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