Inconsistency in inventory loss measurements under the LCM rule

This paper demonstratess that the propensity for student to rely on memorized measuremrnt shortcuts in the application of the LCM rule is attributable to a lack of clear measurement objectives for inventory losses in the professional standards. Any one of three possible definitions of loss might be applicable to a valuation case and there is no criterion for the selection of which loss concept is applicable until after the valuations have been made. Without an intelligble conceptual guide, students are left with only memorized rules in solving LCM problems.