lower of average cost or market retail method

简明释义

平均成本与市价孰低售价法

英英释义

例句

1.In accounting, companies often use the lower of average cost or market retail method 成本或市场零售法的较低者 to value their inventory.

在会计中，公司通常使用成本或市场零售法的较低者来评估其库存的价值。

2.Retailers must consider the lower of average cost or market retail method 成本或市场零售法的较低者 when assessing potential losses on unsold stock.

零售商在评估未售出库存的潜在损失时必须考虑成本或市场零售法的较低者。

3.During the financial audit, the auditor verified that the lower of average cost or market retail method 成本或市场零售法的较低者 was applied correctly.

在财务审计期间，审计员验证了成本或市场零售法的较低者的应用是否正确。

4.To comply with accounting standards, businesses often adopt the lower of average cost or market retail method 成本或市场零售法的较低者 for reporting purposes.

为了遵守会计标准，企业通常采用成本或市场零售法的较低者进行报告。

5.The financial report indicated that the company used the lower of average cost or market retail method 成本或市场零售法的较低者 for its inventory valuation.

财务报告指出，该公司对其库存估值使用了成本或市场零售法的较低者。

作文

In the world of accounting and inventory management, businesses often face the challenge of determining the value of their inventory. One of the commonly used methods to address this issue is the lower of average cost or market retail method. This approach ensures that companies report their inventory at a value that reflects either the average cost incurred to acquire the goods or the current market value, whichever is lower. Understanding this method is crucial for accurate financial reporting and decision-making.The lower of average cost or market retail method serves as a safeguard against overestimating inventory values on the balance sheet. When the market value of an item falls below its average cost, it is essential for businesses to adjust their inventory valuation accordingly. This adjustment not only provides a more realistic view of the company's assets but also helps in recognizing potential losses early on. For instance, if a retailer has purchased a product for $100 but its current market value drops to $80, using the lower of average cost or market retail method would require the retailer to report the inventory at $80, reflecting the actual market conditions.Implementing the lower of average cost or market retail method can also have tax implications for businesses. By recognizing losses through this method, companies can reduce their taxable income, which can be beneficial in the long run. However, it is important for businesses to maintain accurate records and continuously monitor market trends to ensure compliance with accounting standards.Moreover, understanding the lower of average cost or market retail method is vital for investors and stakeholders who rely on financial statements to make informed decisions. A company that accurately applies this method demonstrates financial prudence and transparency, which can enhance investor confidence. On the other hand, a failure to apply this method correctly may lead to inflated asset values, potentially misleading stakeholders about the company’s financial health.In conclusion, the lower of average cost or market retail method is a critical accounting principle that aids businesses in valuing their inventory accurately. By ensuring that inventory is reported at the lower of its average cost or market value, companies can provide a truthful representation of their financial position. This method not only aids in compliance with accounting standards but also plays a significant role in effective financial management and strategic planning. As businesses navigate the complexities of inventory valuation, mastering the lower of average cost or market retail method will undoubtedly contribute to their long-term success and sustainability.

在会计和库存管理的世界中，企业常常面临确定其库存价值的挑战。处理这个问题的常用方法之一是低于平均成本或市场零售法。这种方法确保公司以反映获取商品所产生的平均成本或当前市场价值中的较低者来报告其库存。理解这种方法对于准确的财务报告和决策至关重要。低于平均成本或市场零售法作为防止在资产负债表上高估库存价值的保障。当某项商品的市场价值低于其平均成本时，企业必须相应地调整其库存估值。这一调整不仅提供了公司资产的更现实的视图，还有助于尽早识别潜在损失。例如，如果一家零售商以100美元的价格购买了一种产品，但其当前市场价值降至80美元，则使用低于平均成本或市场零售法将要求零售商以80美元报告库存，反映实际市场状况。实施低于平均成本或市场零售法也可能对企业的税收产生影响。通过这一方法确认损失，企业可以减少其应纳税所得额，这在长期内可能是有利的。然而，企业必须保持准确的记录，并持续监测市场趋势，以确保遵守会计标准。此外，理解低于平均成本或市场零售法对于依赖财务报表做出明智决策的投资者和利益相关者至关重要。准确应用这一方法的公司展示了财务谨慎和透明度，这可以增强投资者信心。另一方面，未能正确应用此方法可能导致资产价值膨胀，从而可能误导利益相关者对公司财务健康状况的看法。总之，低于平均成本或市场零售法是一个关键的会计原则，帮助企业准确评估其库存。通过确保库存以其平均成本或市场价值中的较低者进行报告，公司可以提供其财务状况的真实表现。这种方法不仅有助于遵守会计标准，还在有效的财务管理和战略规划中发挥着重要作用。在企业应对库存估值的复杂性时，掌握低于平均成本或市场零售法无疑将有助于其长期成功和可持续发展。