# Net realizable value

> Net realizable value — Estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. FIFO and average-cost inventory is carried at the lower of cost and NRV, and the shortfall is a loss of the period it arises in.

Source: https://lopifi.com/glossary/net-realizable-value
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is 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. FIFO and average-cost inventory is carried at the lower of cost and NRV, and the shortfall is a loss of the period it arises in.

## Also known as

- NRV

## Words this system refuses for it

- market value
- lower of cost or market (still the rule for LIFO and the retail method)

- **Category:** Statements
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** inventory, period, fifo