Blue Steel Motors is an automaker of gasoline$-$based engines. It recently introduced electric vehicles into their product offerings. As a result, determining inventory value for raw materials, work$-$in$-$process, and finished goods is a complex valuation process since some of its inventory is obsolete or has lost market value. GAAP requires that inventory is reported as the lesser of cost or net realizable value. Analyses were conducted to valuate the inventory. What question should be asked when interpreting the results of the inventory valuation analyses?

Were inventory counts conducted accurately?

Was the classification of the work$-$in$-$process and finished goods assessed correctly?

Does it make sense that the market value of raw materials is lower than the historic cost?

Can the market value be used as a substitute for the net realizable value of raw materials?