Floor value of inventory-lcm rule

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Year end inventory cannot merely be based on a company's cost based on whatever the cost flow method the company is using. It needs to be further tested under the lower of cost or market rule for the potential need to mark it down. What are the "tests" used to determine the ceiling and the floor to which the market value of the inventory is applied in order to determine what the "market" value is to the company?

Reference no: EM13114183

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