Lower of Cost or Market (LCM) Method: Why It's Used and Application
![](https://www.investopedia.com/thmb/Q3f6YLhDnYeI8FUkLseJ0AX_yNc=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/Lowerofcostandmarketmethod_final-cba5b199f508448280cdcc05d4f8ebc8.png)
![](https://www.investopedia.com/thmb/m7xkVbLcBFtXtXeiLWmiT5UF-EA=/400x250/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1239409246-c050a7f0fc4046e6b2f10538dae8c652.jpg)
Markets Rise at Midday, on Track for a Monthly Gain on Profits, Lower Inflation
![](https://www.investopedia.com/thmb/s8Usw-vlFigBt4kljuUVrno3ojI=/400x250/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1779067641-ef00b7a26db64b7fa9fc50d551aa518f.jpg)
Markets Rise at Midday, on Track for a Monthly Gain on Profits, Lower Inflation
![](https://www.investopedia.com/thmb/pdCMhYzdzjWPutziIQizOVKeenc=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1379448556-11bc3a4f186e4a2c8fcf1fa3884db207.jpg)
Markets Rise at Midday, on Track for a Monthly Gain on Profits, Lower Inflation
![](https://i.ebayimg.com/images/g/fD8AAOSwNARg6J-d/s-l1200.webp)
REAL METHOD
![](https://www.investopedia.com/thmb/UUHL-8yVDvux-JbtRe8YPVxbvng=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/CVX_SPXTR_XOM_DVN_OXY_SHEL_chart-539f479017874d92bc55881cff249332.png)
Markets Rise at Midday, on Track for a Monthly Gain on Profits, Lower Inflation
![](https://www.investopedia.com/thmb/1NIktgXuS5SgkIrt2hNC8IM8pCs=/4000x2667/filters:no_upscale():max_bytes(150000):strip_icc()/capitalleasemethod.asp-final-439292600f754a77ab7c43f1abe1d929.png)
Financial Statements
REAL METHOD
![](https://www.investopedia.com/thmb/Q3f6YLhDnYeI8FUkLseJ0AX_yNc=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/Lowerofcostandmarketmethod_final-cba5b199f508448280cdcc05d4f8ebc8.png)
Lower of Cost or Market (LCM) Method: Why It's Used and Application
![](https://www.investopedia.com/thmb/FACHMT_GBgMv3XoWnQkZipMLnTM=/400x250/filters:no_upscale():max_bytes(150000):strip_icc()/audit-4190944_1920-990fc563250141bbbb6b2b07e2a31165.jpg)
How Inventory Accounting Differs Between GAAP and IFRS
![](https://cdn.jwplayer.com/v2/media/UbdjYDHn/poster.jpg?width=720)
NRV: What Net Realizable Value Is and a Formula To Calculate It
![](https://www.investopedia.com/thmb/O6iFLC2zfc1ug2-eMMwbR6Mh5EE=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1082417236-caef8125dba1410d98890b4917a32e95.jpg)
How to Apply GAAP to Inventory Reserves
![](https://www.investopedia.com/thmb/7NuCqW3-_O-jtJ3n2E9V4rN7-yU=/400x250/filters:no_upscale():max_bytes(150000):strip_icc()/Last-In-First-Out-v1-da47bc6193f44fcda65e4618fb20fb09.png)
Lower of Cost or Market (LCM) Method: Why It's Used and Application
![](https://www.investopedia.com/thmb/NfOvFaXNVokU3Cv6lYEc4-qkMiM=/400x250/filters:no_upscale():max_bytes(150000):strip_icc()/Inventory-Write-Off_Final3-resized-9ab3fcc8c1234d1ea005ca1443e8ff65.jpg)
How to Apply GAAP to Inventory Reserves
![](https://www.investopedia.com/thmb/QW67rPpNaPKw6e3xz4B7qqU_k9k=/400x250/filters:no_upscale():max_bytes(150000):strip_icc()/Cashconversioncycle-f39bee15fd174aae897c72466b2449ff.jpg)
NRV: What Net Realizable Value Is and a Formula To Calculate It
![](https://www.investopedia.com/thmb/n2Y6Kmn0vCB7h0klUh1BqaXwmCE=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/plstatement-48d5cf4b883b4a9ba9b6e0243208fc5b.png)
Financial Statements