What does lower of cost or market mean?
Definitions for lower of cost or market
low·er of cost or mar·ket
This dictionary definitions page includes all the possible meanings, example usage and translations of the word lower of cost or market.
Wikipedia
Lower of cost or market
Lower of cost or market (LCM or LOCOM) is a conservative approach to valuing and reporting inventory. Normally, ending inventory is stated at historical cost. However, there are times when the original cost of the ending inventory is greater than the net realizable value, and thus the inventory has lost value. If the inventory has decreased in value below historical cost, then its carrying value is reduced and reported on the balance sheet. The criterion for reporting this is the current market value. Any loss resulting from the decline in the value of inventory is charged to "Cost of goods sold" (COGS) if non-material, or "Loss on the reduction of inventory to LCM" if material.
Numerology
Chaldean Numerology
The numerical value of lower of cost or market in Chaldean Numerology is: 1
Pythagorean Numerology
The numerical value of lower of cost or market in Pythagorean Numerology is: 9
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"lower of cost or market." Definitions.net. STANDS4 LLC, 2024. Web. 25 Apr. 2024. <https://www.definitions.net/definition/lower+of+cost+or+market>.
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