It would always be conservative to value inventory at market.

Question

Quizplus · Accepted Answer

It would not always be conservative to value inventory at market. In certain situations, valuing inventory at market could result in an overstatement of the value of inventory on the financial statements. Therefore, it is important to consider various factors such as the reliability of market values, the cost of replacement, and the likelihood of selling the inventory at market prices before deciding to use market value as the basis for valuing inventory.

It Would Always Be Conservative to Value Inventory at Market