The Primary Basis of Accounting for Inventories Is Cost

Multiple Choice

The primary basis of accounting for inventories is cost.A departure from the cost basis of pricing the inventory is required where there is evidence that when the goods are sold in the ordinary course of business their

A) selling price will be less than their replacement cost.
B) replacement cost will be more than their net realizable value.
C) cost will be less than their replacement cost.
D) future utility will be less than their cost.