Lower of cost or market value

Lower of cost or market value,

Definition of Lower of cost or market value:

  1. 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.

Meaning of Lower of cost or market value & Lower of cost or market value Definition