Under AS 2 'Valuation of Inventories', inventories are generally valued at which amount?

1. AS 2 applies the prudence concept to inventory. 2. Inventories are carried at the lower of cost and net realisable value (NRV). 3. Valuing at the higher amount, or always at cost, would overstate assets. _Source: ICAI BoS CA Intermediate Paper 1 (Advanced Accounting), Sept 2025 — Q.1(b), AS 2 Valuation of Inventories._