When applying the lower of cost or market rule to the valuation of inventory, the allowance method is considered preferable to the direct method because the allowance method

a$.$ unlike the direct method, reduces the value of inventory reported on the balance sheet.

b$.$ reports the inventory loss or loss recovery in a separate income statement account.

c$.$ reports a higher inventory net valuation for balance sheet purposes than the direct method.

d$.$ reports smaller losses than the direct method.