Under the lower-of-cost-or-market basis market is defined as current replacement cost.

Name: Under the lower-of-cost-or-market basis market is defined as current replacement cost.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

Under the lower-of-cost-or-market basis, the market value is defined as the current replacement cost. This means that if the current replacement cost is less than the original cost of the inventory, then the inventory must be adjusted down to its market value.

Under the Lower-Of-Cost-Or-Market Basis Market Is Defined as Current Replacement