1. The problem asks for the meaning of Net Realisable Value (NRV) in relation to inventory valuation. 2. Net Realisable Value is defined as the estimated selling price of inventory in the ordinary course of business, minus any costs of completion, disposal, and transportation. 3. This means NRV accounts for the expected selling price less costs necessary to make the sale, including finishing incomplete items and selling expenses. 4. Among the options given: - Option 1 is just the expected selling price, which ignores costs. - Option 2 correctly states expected selling price less disposal costs and cost of completion for incomplete items. - Option 3 is replacement cost, which is different from NRV. - Option 4 is market price, which may not consider costs to sell. 5. Therefore, the correct definition of Net Realisable Value is option 2. Final answer: 2. The expected selling price less disposals costs less, in the case of incomplete items, the cost of completion.