Which statement istrueconcerning the lower-of-cost-or-market method?

A.It requires the company to reduce its inventory to its original cost if prices are rising.

B.Inventories must be adjusted to replacement cost at year-end if the cost in the accounting records is less than the market value to replace the inventory.

C.Companies must record a write-down if the cost of their inventories is greater than their replacement cost

D.It requires companies to maintain inventory reserves.