In accounting for inventories, generally accepted accounting principles require:

departure from the historical cost principle when the utility of inventory has fallen below cost. This rule is known as the “lower-of-cost-or-market” rule. The term “market” as defined here means

A. Original cost minus allowance for obsolescence.

B. Original cost plus normal profit margin.

C. Replacement cost of the inventory.

D. Original cost minus cost to dispose.