The lower-of-cost-or-market value (LCM)rule ________.

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The lower-of-cost-or-market (LCM) rule is an approach used in accounting to ensure inventory is reported at the lower value between its historical cost and the market value. This rule is applied after determining the inventory cost using methods such as specific identification, FIFO, LIFO, or weighted-average. It does not replace these methods but is used in conjunction with them to ensure inventory is not overstated, adhering to the conservatism principle in accounting. Therefore, it is a separate consideration from the choice of inventory costing method.

The Lower-Of-Cost-Or-Market Value (LCM)rule ________