Under the lower-of-cost-or-market basis in valuing inventory, cost is defined as
|selling price less cost of disposal.|
|historical cost plus 10%.|
|selling price less markup.|
Under the lower of cost or market basis in valuing inventory, cost is defined as selling price less cost of disposal.
The lower of cost or market rule states that a business must record the cost of inventory at whichever cost is lower- the original cost or its current market price.
Cost plus pricing is a cost-based method for setting the prices of goods or services. Under this approach, direct material cost, direct labor cost, overhead costs for a product, and add to it a markup percentage.
Markup is the percentage difference between a product's cost and its selling price.
Get Answers For Free
Most questions answered within 1 hours.