Inventoriable Costs

Inventoriable costs are most associated with retail businesses. These costs are incurred during the process of obtaining a product and up to selling the product including holding cost, inventory transfer cost etc.

These total cost termed as product cost. Before selling these products are save as assets in balance and after consumption by the customer or after got sold these items saved as expenses under the cost of goods sold on the income statement.

Inventoriable costs can be: Direct materials, direct labor, freight in & manufacturing overhead

Leave a Reply

Your email address will not be published. Required fields are marked *