Accounting principles require that LIFO inventory be reported at the market value (cost)of replacing inventory when market value is lower than cost.

Name: Accounting principles require that LIFO inventory be reported at the market value (cost)of replacing inventory when market value is lower than cost.
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Under the lower of cost or market rule, inventory must be reported at the lower of its historical cost or its current market value, which applies to LIFO inventory as well.

Accounting Principles Require That LIFO Inventory Be Reported at the Market