The lower of cost or net realizable value (LCNRV) or lower of cost or market (LCM) approaches to valuing inventory are a departure from the accounting principle of reporting assets at their historical costs. There are those who believe that inventory, as well as other assets, should be valued at NRV or market, regardless of whether the value is above or below historical cost. Which valuation do you think is most appropriate for inventory? Historical cost? NRV? Market? Why