Generally, valuing inventory above cost

A) violates conservatism and is never allowed
B) violates the lower of cost or market rule and is never allowed
C) is acceptable when revenue recognition is not applicable
D) is acceptable only in selected industries and in certain circumstances

Valuing inventory above cost is not allowed under conservatism and violates the lower of cost or market rule. However, it may be acceptable in selected industries and in certain circumstances, such as when the inventory is unique or has appreciating value. For example, luxury goods like designer bags or watches may be valued above cost due to their brand value and potential appreciation.