1. The estimated selling price in the normal course of business, less estimated costs to complete and sell. 2. A ratio that indicates the liquidity of inventory by measuring the number of times average inventory is sold during the year; computed by dividing cost of goods sold by the average inventory. 3. For a company using LIFO, the difference between inventory reported using LIFO and inventory using FIFO.! :: Consistency concept :: Net realizable value :: Inventory turnover :: Cost method :: Days in inventory :: LIFO reserve