Lower-of-cost-or-market is a method of inventory valuation.

Name: Lower-of-cost-or-market is a method of inventory valuation.
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Lower-of-cost-or-market (LCM) is a method of valuing inventory in which the inventory is stated at the lower of its cost or its market value as of the financial statement date. This means that if the market value of the inventory is less than its cost, the inventory must be written down to its market value, resulting in a loss to the company's income statement.

Lower-Of-Cost-Or-Market Is a Method of Inventory Valuation