Why Are Inventories Stated at Lower-Of-Cost-Or-Net Realizable Value

Multiple Choice

Why are inventories stated at lower-of-cost-or-net realizable value?

A) To report a loss when there is a decrease in the future utility.
B) To be conservative.
C) To report a loss when there is a decrease in the future utility below the original cost.
D) To permit future profits to be recognized.