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The Lower of Cost or Market rule is: an accounting principle of reporting inventory at its replacement cost ( market ) if replacement cost has

The Lower of Cost or Market rule is:
an accounting principle of reporting inventory at its replacement cost (market) if replacement cost has declined below the inventory's original cost, regardless of the cause.
an accounting principle of purchasing inventory at the lowest cost possible..
an accounting principle of reporting inventory at the lowest historical purchase cost
an accounting principle of reporting inventory at the lower of sales price or cost.
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