A rule included in the Generally Accepted Accounting Principles (GAAP) that states that asset values in inventory should be recorded as the market value, the cost to repurchase, or the production cost, whichever is lowest. This method allows decreases in inventory value to be offset against recorded income.
Related information about lower of cost and market method:
- Lower of Cost and Market Method Definition | Investopedia
A requirement of GAAP in the United States that inventory be recorded at the lower of either the cost to produce it, the cost to repurchase it or the market value of ...
- Lower of Cost and Market Method financial definition of Lower of ...
A provision of the Generally Accepted Accounting Principles stating that an inventory must be valued on a balance sheet as either its historical cost (or what the ...
- What is lower of cost and market method? definition and meaning
Definition of lower of cost and market method: A rule included in the Generally Accepted Accounting Principles (GAAP) that states that asset values in inventory ...
- Lower of Cost and Market Method: Definition from Answers.com
Lower of Cost and Market Method A requirement of GAAP in the United States that inventory be recorded at the lower of either the cost to produce it,
- Inventory Valuation
Oct 31, 2008 ... This is known as the lower of cost and market method. Market is defined as replacement cost or net realizable value. LCM - Product 55,000 ...
- Analysis of Working Papers of Abc Company - Term Papers - Lstee13
Jun 25, 2012 ... The lower of cost and market method has two boundaries on the valuation of inventories. The first is the inventory ceiling, which requires that ...
- Adventure in the nature of trade. - Free Online Library
Apr 1, 1996 ... Although the lower of cost and market method of inventory valuation is inconsistent with the view that no profit or loss arises until the year of ...
- Red Flag Report Sample - CFRA
Lower of Cost and Market Method. A method used for valuing certain assets on the balance sheet at the lower of original cost or current market value. Mark to ...