When Applying the Lower-Of-Cost-Or-Market Rule to Inventories, Market Value Generally

Multiple Choice

When applying the lower-of-cost-or-market rule to inventories, market value generally refers to ________ under U.S. GAAP and ________ under IFRS.

A) current replacement cost; historical cost
B) historical cost; net realizable value
C) historical cost; current replacement cost
D) current replacement cost; net realizable value