[Anonymous]

Hello Everyone,

This is kind of a dumb question, but I cant exactly remember the relationship between the cost flow assumptions (FIFO, LIFO, Weighted Average, etc) and the “lower of cost or market” rule.

I’m thinking the cost flow assumptions determine the cost value to compare to the market value, but I’m not 100% on the matter, so I was hoping someone would confirm or correct.

BTW, I have the market valuations down as the median value between replacement, net realizable value, and net realizable value less normal profit, so I am good with that part. I just want to be sure associating the cost flow assumptions with the cost part of the rule is correct. It seems like it is, but I just want to be sure.

Thanks,

Liam