Multiple Choice $3$ points

The lower$-$of$-$cost$-$or$-$net realizable value method for inventory:

Must be applied to inventory on an item by item basis.

States that inventory must be written down to its net realizable value $($NRV$)$ if its NRV is lower than acquisition cost.

Places losses from price declines in the period the goods are sold rather than in the period of the price decline

States that inventory must be reported on the balance sheet at its current net realizable value and may cause inventory to be written up to an amou historical cost.