Inventoriable
Inventoriable costs are costs that are included in the cost of inventory on a company's balance sheet rather than being expensed immediately. They represent the expenditures necessary to acquire goods or to manufacture them and to bring the goods to their present location and condition.
In manufacturing settings, inventoriable costs include direct materials, direct labor, and manufacturing overhead allocated to production,
In merchandising businesses, inventorial costs typically include the purchase price of goods plus freight-in and other
Accounting treatment: Inventoriable costs are capitalized as inventory on the balance sheet and become cost of
The term inventoriable is used to distinguish costs that will be inventoried from period costs. It is