Question: When is it justifable to write down inventory below historical cost? When the revenue - producing ability of the inventory drops below its historical cost

When is it justifable to write down inventory below historical cost?
When the revenue-producing ability of the inventory drops below its historical cost
To establish a reserve against which future declines can be written off
When the FIFO inventory accounting method is used in a period of declining prices
When the cost of the inventory is lower than its replacement cost
When is it justifable to write down inventory

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