True or False: Losses on reduction to LCM may be charged to either cost of goods sold or to a current loss account without distorting

True or False: Losses on reduction to LCM may be charged to either cost of goods sold or to a current loss account without distorting financial statement ratios.

Answer: FALSE

True or False: The purpose of ceilings and floors in LCM is to prevent profit distortion.

Answer: TRUE

True or False: The primary motivation behind LCM is consistency.

Answer: FALSE