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base stock method

noun
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Definition of base stock method

: an accounting method of valuing inventories by carrying on the books a minimum quantity of a commodity at the same low fixed price from year to year and valuing the quantity in excess of the minimum at a separate price which is usually the lower of cost or market value — compare last in , first out

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History and Etymology for base stock method

base entry 3

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“Base stock method.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/base%20stock%20method. Accessed 19 Jan. 2022.

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