Lower-Of-Cost-And-Net-Realizable-Value (LCNRV) Rule
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Description
A method of inventory pricing in which goods are valued at original cost or net realizable value, whichever is lower.
Below you can find two links, each explaining in depth the difference between 'Lower of Cost' and 'Net Realizable Value':
http://en.wikipedia.org/wiki/Lower_of_cost_or_market
http://en.wikipedia.org/wiki/Net_realizable_value
Concept Prerequisite
Wikipedia Reference
http://en.wikipedia.org/wiki/Net realizable value
Learning Material
Covered in Topic(s)
| Inventories & the COGS |