{"ok":true,"canonical_url":"https://dealroom.so/glossary/cost-or-market","api_url":"https://dealroom.so/api/public/glossary/cost-or-market","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"cost-or-market","term":"Cost or Market","group":"Reading the business","definition":"An accounting principle for valuing inventory, stating it should be recorded at the lower of its original cost or its current market value. This prevents overstating asset values.","what_it_means":"When reviewing inventory during due diligence, this principle helps ensure the balance sheet isn't inflated with obsolete or devalued stock. Your lender will want an accurate inventory valuation, as it impacts the overall asset value and potentially collateral for the loan.","url":"https://dealroom.so/glossary/cost-or-market","official_sources":[],"related":[{"slug":"inventory","term":"Inventory","url":"https://dealroom.so/glossary/inventory"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"fair-market-value","term":"Fair market value","url":"https://dealroom.so/glossary/fair-market-value"}],"related_questions":[{"question":"Can an SBA 7(a) loan cover the cost of initial marketing and advertising for the acquired business?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-cover-the-cost-of-initial-marketing-and-advertising-for-the-acquired-b"},{"question":"Can an SBA 7(a) loan cover the cost of a business valuation or appraisal?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-cover-the-cost-of-a-business-valuation-or-appraisal"},{"question":"Can an SBA 7(a) loan finance the cost of a franchise fee for a new or existing franchise?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-the-cost-of-a-franchise-fee-for-a-new-or-existing-franchise"},{"question":"What factors primarily influence the premium cost of business life insurance?","url":"https://dealroom.so/sba-7a/questions/what-factors-primarily-influence-the-premium-cost-of-business-life-insurance"},{"question":"What are the common triggers that lead to an SBA programmatic or secondary market review of a lender's 7(a) loan portfolio?","url":"https://dealroom.so/for-lenders/questions/what-are-the-common-triggers-that-lead-to-an-sba-programmatic-or-secondary-market-review-o"},{"question":"Can an SBA 7(a) loan cover the cost of inventory for a business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-cover-the-cost-of-inventory-for-a-business"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Cost or Market","url":"https://dealroom.so/glossary/cost-or-market","source_type":"DealRoom Data"}}