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3. For Product A, the use of a constraint prevents an excessive write-down of inventory. If the future periods. Therefore, the imposition of the For
3. For Product A, the use of a constraint prevents an excessive write-down of inventory. If the future periods. Therefore, the imposition of the For Product B, the use of a constraint were not imposed, an excessive loss would be recognized in the period of the write-down followed by an excessive profit in constraint prevents the profit distortion that would occur by an understatement of inventory and overstatement of losses in the current period. constraint prevents inventory from being valued at an amount that exceeds the amount the company could realize by seliling it
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