Floor

Accounting Terms Dictionary

Select a letter below to view all accounting terms that begin with that letter.

Floor

The lowest value that can be used when valuing inventory using the lower of cost or market method. The floor is the selling price minus the profit.

If Susan bought inventory for $4 and plans to sell it for $7, $4 is the lowest value that can be placed upon the inventory, $7 selling price -$3 profit.

There is currently no content classified with this term.

Get instant access to step-by-step instructions on how to apply and sit for the CPA Exam.

Expected or Past Undergrad Graduation Date*

When Do You Plan to Start Studying?