The logic behind the lower$-$of$-$cost$-$or$-$market rule is:

Select one:

a$.$ Inventory gradually becomes obsolete.

b$.$ An asset is not worth more than it would cost the owner to replace it$.$

c$.$ Inventory that is unsalable should be written down to its replacement cost.

d$.$ Inventory that is unsalable should be written down to zero $($or its scrap value$).$