Net realizable value

In accounting, net realizable value means estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. FIFOStatementsFIFOThe cost-flow assumption that the oldest units leave inventory first, so cost of revenue carries the earliest costs and the shelf the latest. When prices rise, FIFO reports the lower cost of revenue and the higher inventory and average-cost inventoryStatementsInventoryGoods held for sale, or being made for sale, carried as an asset at cost until sold — when the cost moves to cost of revenue is carried at the lower of cost and NRV, and the shortfall is a loss of the periodCore ledgerPeriodA fiscal reporting window it arises in.