The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

LOWER OF COST OR MARKET VALUE Definition & Legal Meaning

Definition & Citations:

Its application is mandated under the provisions of GAAP. Conservative accounting valuation rule. Requires valuing certain asset types, like an inventory, at the lesser of either at historical cost or at current replacement cost. Also known as lower of cost and net realizable value.

Disclaimer

This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.