What is the meaning of Lower of Cost or Market?

Subtopics: LOCOM 

Valuing ASSETS for financial reporting purposes. Ordinarily, "cost" is the purchase price of the asset and "market" refers to its current replacement cost. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) requires that certain assets (e. G., INVENTORIES) be carried at the' Lower of Cost or Market'.

3
 
|15 years ago|314 views|share |citing 
APABarry Goldsmith. (2010). lower of cost or market. Retrieved September 27, 2026, from http://smartdefine.org/lower_of_cost_or_market/definitions/1157617
ChicagoBarry Goldsmith. 2010. "lower of cost or market" http://smartdefine.org/lower_of_cost_or_market/definitions/1157617 (accessed September 27, 2026).
HarvardBarry Goldsmith 2010, lower of cost or market, Smart Define, viewed 27 September, 2026, <http://smartdefine.org/lower_of_cost_or_market/definitions/1157617>.
MLABarry Goldsmith. "lower of cost or market" 21 October 2010. Web. 27 September 2026. <http://smartdefine.org/lower_of_cost_or_market/definitions/1157617>