Which statement concerning lower of cost or market (lcm) is incorrect? lcm is an example of a company choosing the accounting method that will be least likely to overstate assets and income. under the lcm basis, market does not apply because assets are always recorded and maintained at cost. the lcm basis uses current replacement cost because a decline in this cost usually leads to a decline in the selling price of the inventory item. lcm is applied after one of the cost flow assumptions has been applied.

Analyzing operational changes operating results for department b of delta company during 2016 are as follows: sales $540,000 cost of goods sold 378,000 gross profit 162,000 direct expenses 120,000 common expenses 66,000 total expenses 186,000 net loss $(24,000) suppose that department b could increase physical volume of product sold by 10% if it spent an additional $18,000 on advertising while leaving selling prices unchanged. what effect would this have on the department's net income or net loss? (ignore income tax in your calculations.) use a negative sign to indicate a net loss answer; otherwise do not use negative signs with your answers. sales $answer cost of goods sold answer gross profit answer direct expenses answer common expenses answer total expenses answer net income (loss) $answer