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      Question

      As per AS 2, inventories should be valued

      at:
      A Historical Cost. Correct Answer Incorrect Answer
      B Net Realizable Value. Correct Answer Incorrect Answer
      C Lower of Cost or Net Realizable Value. Correct Answer Incorrect Answer
      D Replacement Cost. Correct Answer Incorrect Answer
      E Standard Cost. Correct Answer Incorrect Answer

      Solution

      This is based on the principle of Prudence/Conservatism, ensuring inventory is not overstated.

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