When applying the lower-of-cost-or-market rules to beginning inventory valuation, market value generally refers to the cost at which the company can sell a unit of inventory.

Question

Quizplus · Accepted Answer

When applying the lower-of-cost-or-market rules to beginning inventory valuation, market value generally refers to the replacement cost of a unit of inventory, not the selling price.

When Applying the Lower-Of-Cost-Or-Market Rules to Beginning Inventory Valuation, Market