Under International Financial Reporting Standards, net realizable value is defined as inventory's replacement cost. True or False True False For companies that have net markdowns, the cost-to-retail percentage used in the average cost retail method will be lower than the percentage used in the conventional retail method. True or False True False The cost-to-retail percentage used in the retail method to approximate average cost incorporates both markdowns and markups. True or False True False A change in inventory method that causes an increase to the balance of inventory would be recorded with a debit to inventory and a credit to cost of goods sold. True or False True False