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Explain Why the Lower of Cost or Market Rule Is

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Explain why the lower of cost or market rule is used to value inventory.


Definitions:

Frequency Distribution

The representation, either in graphical or tabular format, of how often each distinct value occurs in a set of data.

Class Interval

A range of values in a data set that are divided into different classes or categories for frequency distribution analysis.

Class Interval

A range of values within a dataset into which data points are grouped for frequency distribution analysis, often used in histograms.

Histogram

A graphical representation of the distribution of numerical data, usually showing the frequency of data within certain ranges.

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