Lower of Cost or Net Realizable Value in Financial Accounting Formulas

Lower of Cost or Net Realizable Value means that inventory should be reported on the balance sheet at either its original cost or its net realizable value, whichever is lower. And is denoted by LCRV.

Formulas to find Lower of Cost or Net Realizable Value in Financial Accounting

fxNet Realizable ValueGo

Financial Accounting formulas that make use of Lower of Cost or Net Realizable Value

fxInventory Write-DownGo

List of variables in Financial Accounting formulas

fx Expected Sale Price Go

fx Disposal Costs Go

FAQ

What is the Lower of Cost or Net Realizable Value?

Lower of Cost or Net Realizable Value means that inventory should be reported on the balance sheet at either its original cost or its net realizable value, whichever is lower.

Can the Lower of Cost or Net Realizable Value be negative?

{YesorNo}, the Lower of Cost or Net Realizable Value, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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