Accountants use net realizable value in evaluation; as it is more prudent, it takes into account the depreciation of an asset. The cost of inventories at the end of the reporting period may be higher than their net realisable value if those inventories were damaged, if they have become wholly or partially obsolete, if their selling prices have declined, or the estimated costs of completion or costs necessary to make the sale have increased. The practice of writing inventories down to net realisable value is consistent with the view that the carrying amount of assets should not be carried in excess of amounts expected to be realised from their sale or use during the operating cycle.