Which of the Following Is True Regarding the Application of Lower-Of-Cost-Or-Market

Multiple Choice

Which of the following is true regarding the application of lower-of-cost-or-market method under international accounting standards?

A) Inventory is recorded at the lower-of-cost-or-market value (defined as replacement cost of the inventory) .
B) Inventory is recorded at the lower-of-cost-or-market value defined as net-realizable value.
C) Inventory is recorded at the lower-of-cost-or-market value defined as net-realizable value, minus the normal profit margin.
D) No lower-of-cost-or-market rule for inventory exists under international accounting standards.