Net Realizable Value Inventory is a business term that refers to the estimated amount of money received when inventory is sold at the market price. This figure takes into account any expenses associated with turning the inventory into cash, such as cost of freight, commissions, and payment processing fees. It’s an important concept for businesses to understand, as it affects their financial statements and bottom line. In short, Net Realizable Value Inventory is the difference between the sale price and disposal costs – it’s the realizable value of your inventory!