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The primary basis of accounting for inventories is cost. A departure from the cost basis of pricing inventory is required where there is evidence

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The primary basis of accounting for inventories is cost. A departure from the cost basis of pricing inventory is required where there is evidence that when the goods are sold in the ordinary course of business, the O replacement cost will be more than their net realizable value. O cost will be less than their replacement cost. O selling price will be less than their replacement cost. O future utility will be less than their cost.

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