lower of cost or market value
Definition
Conservative valuation rule of accounting which requires certain types of assets (such as inventory) to be valued either at their historical cost or at the current replacement cost—whichever is less. Also called lower of cost and net realizable value, its application is mandated under the provisions of GAAP.
lower of cost or market value is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
lower of cost or market value appears in the definitions of the following terms: net realizable value of asset, lower of cost and net realizable value, obsolescence and accounting concepts
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