kostpriset

Kostpriset refers to the amount paid to acquire goods or services, including the costs required to bring them to their present location and condition. In Danish, Norwegian and Swedish accounting, kostpris is the established label for this concept and corresponds to the English term cost price. It is distinct from selling price or market price and is primarily used for valuing inventory and assessing profitability.

Components of kostpris typically include the purchase price, import duties and non-refundable taxes, transport and handling costs, insurance during transit, and other directly attributable costs of bringing the item to its present location and condition. It may also include costs of conversion or production that are directly tied to acquiring or preparing the asset, and allocated overheads on a systematic basis. Under many accounting frameworks such as IFRS IAS 2, the cost can include fixed and variable overheads allocated to inventory, as long as they are directly attributable or apportioned on a rational basis.

It excludes selling costs, distribution costs after acquisition, and most taxes recoverable from authorities, such as VAT in many jurisdictions. If a tax is non-refundable and part of bringing the inventory to its present condition, it is included in kostpris. The VAT that is recoverable is excluded from the cost price. The concept is used to value inventory on the balance sheet and to determine gross margin via cost of goods sold.

Practically, kostpris is calculated by summing the relevant items. For example, a purchase price of 100, import duty 5, freight 10, insurance 2, handling 3, and allocated overheads 8 yields a kostpris of 128. It forms the basis for pricing decisions, budgeting, and tax reporting.