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You have learned that inventory may be written down to its current replacement cost or its...

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Accounting

You have learned that inventory may be written down to itscurrent replacement cost or its net realizable value if theseamounts are lower than original cost. Why do you think theaccounting profession has decided to violate the cost concept andreduce the value of inventory in these circumstances?

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Valuation of inventory is done at lower of cost or market value LCMV Cost of inventory refers to historical cost of inventory whereas market value of inventory refers to Net    See Answer
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You have learned that inventory may be written down to itscurrent replacement cost or its net realizable value if theseamounts are lower than original cost. Why do you think theaccounting profession has decided to violate the cost concept andreduce the value of inventory in these circumstances?

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