Under the lower-of-cost-or-market basis in valuing inventory market is defined as
A) current replacement cost.
B) selling price.
C) historical cost plus 10%.
D) selling price less markup.

Question

Quizplus · Accepted Answer

Under the lower-of-cost-or-market basis, market is defined as current replacement cost, meaning the cost it would take to replace the inventory in current market conditions.

Under the Lower-Of-Cost-Or-Market Basis in Valuing Inventory Market Is Defined