Under U.S. GAAP, the normal rule is that inventories are recorded at the lower of cost or market. However, there is an exception for certain fungible commodities, with a ready market, like gold or wheat or oil. Such items are recorded at fair value. Does this exception make sense, based on the ideas in the FASB’s conceptual framework discussed in Chapter 2? (The conceptual framework listed various desirable characteristics of accounting information, including relevance, predictive value, representational faithfulness, freedom from error, neutrality, and comparability. It also considered the cost of measurement as a constraint.)