The Lower of Cost or Market rule is based on which accounting principle?

Name: The Lower of Cost or Market rule is based on which accounting principle?
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The Lower of Cost or Market rule is based on the conservatism accounting principle, which states that when there are two acceptable alternatives, the less optimistic one should be chosen. In this case, when inventory is worth less than its original cost, the conservative approach is to write down the inventory value to its current market value.

The Lower of Cost or Market Rule Is Based on Which