Glossary

An LCM Reserve (lower of cost or market) is an amount reserved for when the market price for a company's inventory drops below the cost recorded on it's books.

LIBOR is a benchmark rate that some of the world’s leading banks charge each other for short-term loans. It stands for London Interbank Offered Rate and serves as the first step to calculating interest rates on various loans throughout the world.

The London Interbank Offered Rate (Libor) and the US Prime Rate are both benchmark interest rates. Both rates are used as reference rates for various lending and borrowing transactions. 

Last in, first out (LIFO) is an asset management and valuation method that assumes assets produced or acquired last are the ones used, sold or disposed of first; LIFO assumes an entity sells, uses or disposes of its newest inventory first.

The LIFO reserve is a contra inventory account that will reflect the difference between the FIFO cost and LIFO cost of its inventory. With consistently increasing costs, the balance in the LIFO reserve account will have a credit balance—resulting in less costs reported in inventory.

Landed cost is the total cost of a product or shipment once it has arrived at a buyer's doorstep. The landed cost includes the original price of the product, transportation fees (both inland and ocean), customs, duties, taxes, tariffs, insurance, currency conversion, crating, handling and payment.

Most often a Landlord Waiver is used when inventory or equipment lenders are secured by collateral located in premises leased by the borrower.

A lien on rented property for the satisfaction of unpaid rent.