Answer
Companies apply LCM method to the items in inventory after they have used one of cost flow methods to determine cost.
Work Step by Step
Cost flow methods either FIFO, LIFO or average cost.
Accounting: Tools for Business Decision Making, 5th Edition
by Kimmel, Paul D.; Weygandt, Jerry J.; Kieso, Donald E.
Published by
Wiley
ISBN 10:
1118128168
ISBN 13:
978-1-11812-816-9
Chapter 6 - Reporting and Analyzing Inventory - Questions - Page 313: 19
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