Which of the following statements regarding the applying of the lower of cost or net realizable value (LCNRV) method is true?

a. Generally, historical cost is greater than replacement cost.

b. The lower of cost or net realizable value method is most commonly applied on a total inventory basis because it is a more conservative approach.

c. The lower of cost or net realizable value method is an exception to the historical cost principle.

d. When the lower of cost or net realizable value method is used, inventories are valued at their selling price.