What is the cost in the method of lower cost or net realizable value?
Cost or net realizable value, which is lower, generally refers to the investment cost of the enterprise, which refers to the sum of the credit increased by the enterprise for purchasing assets and the principal of the loan. It can estimate the price of purchasing raw materials, labor and machinery. In addition, it also includes all kinds of expenses increased by investors for the implementation of the plan, such as consulting fees, interest, taxes and fees, etc. In this case, the cost is equivalent to the sum of these expenses.