ts) An auditor recently asked an accounting manager to perform a LCM test on a batch of inventory. Since the manager would prefer to avoid the cost of a LCM test, what GAAP argument could she use to avoid performing the test? O The cost of the test would not outweigh the benefit of the result. O Why don't you perform the test? That's what we are paying you for. O I have no reason to believe future value has dropped below the historical cost. O The recorded cost accurately represents the costs when the inventory was produced.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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ts) An auditor recently asked an accounting manager to perform a LCM test on a batch of inventory.
Since the manager would prefer to avoid the cost of a LCM test, what GAAP argument could she use to
avoid performing the test?
O The cost of the test would not outweigh the benefit of the result.
O Why don't you perform the test? That's what we are paying you for.
O I have no reason to believe future value has dropped below the historical cost.
h
O The recorded cost accurately represents the costs when the inventory was produced.
Transcribed Image Text:ts) An auditor recently asked an accounting manager to perform a LCM test on a batch of inventory. Since the manager would prefer to avoid the cost of a LCM test, what GAAP argument could she use to avoid performing the test? O The cost of the test would not outweigh the benefit of the result. O Why don't you perform the test? That's what we are paying you for. O I have no reason to believe future value has dropped below the historical cost. h O The recorded cost accurately represents the costs when the inventory was produced.
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