Under the lower of cost or market method,the floor provides a lower bound for write-downs in situations where input replacement cost and selling price do not move together.

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The statement is true. Under the lower of cost or market method, inventory is valued at the lower of its historical cost or its market value. Market value refers to the replacement cost, less any costs associated with selling the inventory. The "market" here refers to the current price that would be paid to replace the inventory, not necessarily the selling price of the inventory itself. In situations where replacement cost and selling price do not move together, the floor (i.e. the lower bound) for write-downs is set at the market value, which may be below the historical cost.

Under the Lower of Cost or Market Method,the Floor Provides