What criteria are used to determine which of Dianes costs areinventoriable? (b)

What criteria are used to determine which of Dianes costs areinventoriable? (b) Are Dianes administrative costs inventoriable?2. (a) Diane uses the lower of cost or market rule for itswholesale inventories. Explain the theoretical arguments for thatrule. (b) The replacement cost of the inventories is below the netrealizable value less a normal profit margin which in turn isbelow the original cost. Explain the amount that is used to valuethe inventories. 3. Diane calculates the estimated cost of itsending inventories held for sale at retail using the conventional(lower of average cost or market) retail inventory method. Explainhow Diane would treat the beginning inventories and net markdownsin calculating the cost ratio used to determine its endinginventories.