Always Accounting standards

As per Accounting standard AS 2 valuation of inventories

as per Accounting standard 2 valuation of inventories, valuation of raw material..cost of raw material or replacement value whichever is lower we should have to take that lower amount am I correct??

for an example the raw material cost is RS 1000 but the replacement cost Rs 600 means we should have to take lower value to value the raw material rupees 600 am I correct??


does replacement cost and market price both same??


plse guide me