lower of cost or market

lower of cost or market
= LCM
A method of valuing a current asset of an organization in which the value taken is either its purchase (or production) price or the cost of replacing it (by purchase or manufacture), whichever is the lower. The Companies Act (1985) requires that a current asset be valued at either its purchase (or production) price or its net realizable value, whichever is the lower.

Big dictionary of business and management. 2014.

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  • Lower of Cost or Market — (LCM) is an approach to valuing and reporting inventory. Normally ending inventory is stated at historical cost (what was paid to obtain it) but there are times when the original cost of the ending inventory is greater than the cost of… …   Wikipedia

  • lower of cost or market — ( LOCOM) The accounting practice of reflecting the value of an asset at the lower of its historical cost or market value. American Banker Glossary …   Financial and business terms

  • lower of cost or market method — n. In accounting, an approach under which the value of goods held for sale is set at the lower of acquisition cost or market price. Webster s New World Law Dictionary. Susan Ellis Wild. 2000 …   Law dictionary

  • Lower of Cost and Market Method — A requirement of GAAP in the United States that inventory be recorded at the lower of either the cost to produce it, the cost to repurchase it or the market value of the inventory. The lower of cost and market method has two boundaries on the… …   Investment dictionary

  • lower of cost or market — A basis for inventory valuation where the inventory value is set at the lower of acquisition cost or current replacement cost (market) …   Black's law dictionary

  • lower of cost or market — A basis for inventory valuation where the inventory value is set at the lower of acquisition cost or current replacement cost (market) …   Black's law dictionary

  • Стоимость или рыночная цена (COST OR MARKET)  — См. Наименьшая между стоимостью и рыночной ценой (Lower Of Cost Or Market, LCM) …   Словарь терминов по управленческому учету

  • Наименьшая между стоимостью и рыночной ценой (LOWER-OF-COST-OR-MARKET, LCM)  — Метод оценки, при котором стоимость актива принимается равной либо рыночной, либо закупочной в зависимости от того, какая из них является меньшей. Рыночная стоимость принимается равной текущей стоимости замещения (посредством приобретения или… …   Словарь терминов по управленческому учету

  • Cost of goods sold — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • cost of borrowing — UK US noun [S] ► ECONOMICS, FINANCE interest and other charges that have to be paid when you borrow money: raise/increase/drive up the cost of borrowing »In November last year, the central bank raised the cost of borrowing to 3.75%.… …   Financial and business terms

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