Why Do Accountants Criticize the Practice of Carrying Inventories at Estimated

Multiple Choice

Why do accountants criticize the practice of carrying inventories at estimated net realizable values?

A) The costs of producing the products are usually estimates.
B) There is usually no clearly defined realizable value for any inventories.
C) In effect, this practice recognizes income before sales are made.
D) It will result in higher cost of goods sold and lesser profits.