The market value for purposes of using the lower of cost or market (LCM) method is defined as replacement cost, subject to a ceiling and a floor.

Name: The market value for purposes of using the lower of cost or market (LCM) method is defined as replacement cost, subject to a ceiling and a floor.
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This statement is true. The market value used in the LCM method is typically defined as replacement cost, with a ceiling (net realizable value) and a floor (net realizable value minus a normal profit margin).

The Market Value for Purposes of Using the Lower of Cost