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Lower of Cost
An accounting principle that dictates inventory and other assets should be recorded at the lesser of their historical cost or current market value.
Inventory Valuation
The process of calculating the cost assigned to inventory items to determine the cost of goods sold and the inventory asset value at the end of an accounting period.
Weighted Average
A calculation that takes into account the varying weights or significance of different items in a data set, producing a mean value.
Perpetual Inventory System
A method of inventory management that instantly logs sales or acquisitions of inventory using computerized point-of-sale systems and software for managing enterprise assets.
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