Lesson60 seconds
What is Lower of Cost or NRV?
Writing down when it can't be sold for at least what it cost.
Step 1 of 9
Simple Definition
Inventories are measured at the lower of cost and net realizable value (NRV) - estimated selling price less costs of completion and sale.
Explanation level
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Try “Like I'm 5™” for a picture-book version - not the grown-up wording above.
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