what inventory costing methods are allowed by gaap 
along with the lower of cost or market lcm method being required by gaap reporting other inventory costing methods allowed by gaap are the bottom linethe lower of cost or market lcm method is a conservative accounting principle used to value a company s inventory while the lcm method may result in lower profits and lower taxes it provides a more accurate picture of a company s financial health companies should carefully consider the lcm method when valuing their inventory to ensure that their financial statements are transparent and accurate 