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Sometimes referred to as cost of inventory on hand, the inventoriable cost will include not only the cost of purchasing the items that are found in the inventory, but also all expenses that are related to using those items in the creation of products that are ultimately offered for sale.
For example, current cost for inventories is the current acquisition price of the merchandise or the current cost to produce it. Edwards & Bell (1961) present the first systematic presentation of current cost accounting in 1961 in their classical work, âThe Theory and Measurement of Business Incomeâ.