Accounting for IGCSE & O level - Final Statements (Section 1 - No. 31)
What does 'Net Realizable Value' (NRV) represent when valuing inventory?
The original cost of the inventory.
The current market price of the inventory.
The estimated selling price less any costs of completion and disposal.
The purchase price plus freight costs.
Explication
NRV is the selling price less costs to sell.