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The application of lower of cost or NRV is a departure from the practice of carrying inventory at historical cost. This departure is justified because

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The application of lower of cost or NRV is a departure from the practice of carrying inventory at historical cost. This departure is justified because a. it has an immaterial effect on financial reporting b. inventories should not be reported at amount higher than what is expected to be realized c. inventory is a current asset d. financial reporting tends to be conservative e. both B and D f. all of the above g. none of the above

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