Some companies attribute inventory write

Some companies attribute inventory write -...

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Some companies attribute inventory write-downs directly to the cost of goods sold, and some  companies use other expense accounts for this purpose, so write-downs are not usually identified  separately on financial statements. Market value  generally equals the replacement cost of inventory. Items sometimes decrease in  value because they become less expensive to purchase. In other words, the market value drops. The  lower-of-cost-or-market (LCM) rule  is used to determine the value of merchandise inventory.  Suppose a retail computer store purchases one hundred computers for $3,000 each. After the store 
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