In applying lower of cost or market to inventory valuation, market is defined as:
A)Historical cost
B)Current replacement cost
C)Current sales price
D)FIFO
E)LIFO

Question

Quizplus · Accepted Answer

In applying lower of cost or market to inventory valuation, market is defined as the current replacement cost of the inventory. This means the cost of purchasing new inventory to replace the old inventory on hand. Therefore, option B, current replacement cost, is the best choice.

In Applying Lower of Cost or Market to Inventory Valuation