Which of the following statements regarding the application of lower-of-cost-or-market (LCM) to inventory is false?

		Applying the LCM rule is optional.
		The LCM rule is an example of conservatism in accounting.
		Applying the LCM rule can cause income to decrease but not increase.
		The LCM rule is applied after calculating ending inventory according to the company's chosen cost flow assumption (e.g., LIFO, FIFO, average cost).