When applying the lower-of-cost-and-net-realizable-value rule to ending inventory valuation, net realizable value generally refers to the company's expected selling price for its inventory net of any selling costs.

Question

Quizplus · Accepted Answer

Net realizable value (NRV) is indeed the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.

When Applying the Lower-Of-Cost-And-Net-Realizable-Value Rule to Ending Inventory Valuation, Net