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.


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