A onetime error in the application of the lower of cost or m

A one-time error in the application of the lower of cost or market (LCM) rule in the current period distorts financial results for the current accounting period: and the period after O only O and all periods after. O and the period before.

Solution

Lower of cost or market is applied to value inventory. Error in valuation of inventory affects current period income statement and next period income statement. as cost of goods sold = opening inventory plus purchases less ending inventory.

Current year ending inventory is next period opening inventory, thus, this is the reason it affects current plus next period income statement.

Correct option is - and the period after