When applying the lower-of-cost-or-market rule to inventory valuation,market generally means
A)original cost,less physical deterioration.
B)replacement cost.
C)original cost.
D)resale value.

Question

Quizplus · Accepted Answer

Market generally means replacement cost when applying the lower-of-cost-or-market rule to inventory valuation. This means that if the replacement cost is lower than the original cost, the inventory value should be adjusted to the lower replacement cost.

When Applying the Lower-Of-Cost-Or-Market Rule to Inventory Valuation,market Generally Means