The term, "market," as used in Lower of Cost or Market, means 9. a. b. 10. C. d. Ceiling, as that term is defined Floor, as that term is defined Designated market value, as that term is defined Replacement cost, as that term is defined When a buyer and seller enter into what may be defined as a "take or pay" contract- that is, a formal, noncancelable contract - then the buyer a. b. C. d. may negotiate with the seller to secure a more favorable contract, after which the seller is bound by the terms of the new contract. recognizes no asset or liability for the goods covered by the contract, because the contract is executory in nature. must record the purchase as an asset on its books and records as of the date of the contract. may use the contract as collateral on a note borrowing, since the goods thus purchased are recorded on its books and records