It is a method for accounting period-end stocktaking valuation, where a valuation is made at the lower of market price or historical cost. The method for inventory valuation mainly has two types: one belongs to the cost basis type including First-in First-out and Last-in First-out, and another belongs to the lower cost basis type including "Lower of Cost or Market". Moreover "Lower of Cost or Market" is divided into two types: "KIRIHANASHI" method (lower one is regarded as the acquisition cost of the next accounting period-start stock items) and "ARAIKAE" method (so-called mark to market: the comparison between the acquisition cost and the accounting period-end market price is made).