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Simple English definitions for legal terms

lower-of-cost-or-market method

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A quick definition of lower-of-cost-or-market method:

The lower-of-cost-or-market method is a way to determine the value of inventory. It means that the inventory is priced at either the cost of acquiring it or the current market value, whichever is lower. This helps ensure that the inventory is not overvalued and reflects its true worth.

A more thorough explanation:

The lower-of-cost-or-market method is a way of pricing or costing inventory. This method sets the value of inventory at either the cost of acquiring it or the market cost, whichever is lower.

For example, let's say a company has 100 units of a product in inventory. They purchased these units for $10 each, so the total cost of the inventory is $1,000. However, the market value of the product has decreased and is now only $8 per unit. Using the lower-of-cost-or-market method, the company would value their inventory at $800 (100 units x $8 per unit) instead of the original cost of $1,000.

Another example would be if a company has 50 units of a product in inventory. They purchased these units for $20 each, so the total cost of the inventory is $1,000. However, due to a decrease in demand, the market value of the product has decreased and is now only $15 per unit. Using the lower-of-cost-or-market method, the company would value their inventory at $750 (50 units x $15 per unit) instead of the original cost of $1,000.

The lower-of-cost-or-market method is used to ensure that inventory is not overvalued on a company's balance sheet. It is a conservative approach that takes into account any decreases in market value that may occur after inventory has been purchased.

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Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
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