When Comparing the Lower of Cost to Market

When comparing the lower of cost to market

A) the appropriate market value is determined before comparing it to the cost
B) the purpose of the ceiling is to ensure that the write-down is sufficient to cover all expected gains
C) the purpose of the floor is to prevent an excessive gain from being recognized in the future
D) the process is consistent with the principle of conservatism because the goal is to limit excessive swings in gross margin