COGS Overstated: QUESTION 22 If the lower-of-cost-or-net-realizable-value basis of valuing inventories indicates that the value of the inventory has declined, what should management do? O recognize the loss in the period in which the decline in value has occurred nothing because to recognize the loss would violate the historical cost principle. nothing because there is always the possibility that the value of the inventory will increase wait until the inventory is sold to recognize any loss W