The term LCM refers to the process companies use to ensure they are always purchasing lowest cost items. a rule which requires a company to adjust the cost of its inventory when the market price decreases below the cost. the adjustment a company makes for inventory lost or stolen. the repeated calculations necessary to properly record LIFO costs.

b. a rule which requires a company to adjust the cost of its inventory when the market price decreases below the cost.

Explanation:

LCM means lower of cost or market value. It is a rule under which the value of inventory is adjusted to lower of cost or market value. Also, it is a rule which requires a company to adjust the cost of its inventory when the market price decreases below the cost.

Hence, the correct option is a rule which requires a company to adjust the cost of its inventory when the market price decreases below the cost.

answer///supply is elastic, and demand is inelastic;

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