Final answer:
The statement is false because the LCM rule requires an adjustment only if the market value of inventory falls below cost, not if it raises.
Step-by-step explanation:
The statement is False. The Lower of Cost or Market (LCM) rule in accounting states that inventory should be reported at the lower of cost or market value. If the market value of the inventory increases above the cost, accounting adjustments are not required because the inventory is already valued at cost, which is lower. However, if the market value decreases below cost, then an adjustment is required to write down the inventory to its market value, adhering to the concept of conservatism in accounting.