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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.
The basis of accounting for inventories is cost, which is the price paid or consideration given to acquire. the asset. In inventory accounting, cost is the sum of the expenditures and charges, direct and indirect, in. bringing goods to their existing condition or location.