In chapter 2 we discussed the conceptual framework of financial accounting and accounting theory. In chapter 9 we learn of rules for dealing with a decline in inventory value. There are two different methods for dealing with that decline; the Lower-of-Cost-or-Net-Realizable-Value method and the Lower-of-Cost-or-Market method. How do these rules relate to the conceptual framework? In other words, how does the conceptual framework of financial accounting justify or lead to the creation of these rules?