ORTON ment Question 19 Net realisable value of inventories may fall below cost for a number of reasons including: Product obsolescence II. Physical deterioration of inventories III. An increase in the expected replacement costs of the inventories IV. An increase in the estimated costs of completion V. An error in quantities purchased causing overstocking 1, II, IV and V only I, IV and V only 11, 111 and IV only II and V only