Asked by
Marlone Nandjeu
on Nov 18, 2024
Verified
"Market" as used in the phrase "lower of cost or market" for valuing inventory, refers to the price at which the inventory is being offered for sale by the company.
Lower Of Cost Or Market
An accounting principle requiring companies to value inventory at the lower of its historical cost or current market price.
Inventory Valuation
The cost associated with an entity's inventory at the end of a reporting period, calculated using methods like FIFO, LIFO, or Weighted Average.
- Understand the principles behind the lower-of-cost-or-market method and net realizable value in the valuation of inventory.
Verified Answer
MM
Learning Objectives
- Understand the principles behind the lower-of-cost-or-market method and net realizable value in the valuation of inventory.
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