- lower of cost or market method
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n. In accounting, an approach under which the value of goods held for sale is set at the lower of acquisition cost or market price.
Webster's New World Law Dictionary. Susan Ellis Wild. 2000.
Webster's New World Law Dictionary. Susan Ellis Wild. 2000.
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, the cost to repurchase it or the market value of the inventory. The lower of cost and market method has two boundaries on the… … Investment dictionary
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