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In like manner, a finished goods inventory will also have an inventoriable cost. This will include not only all the costs related to the raw materials, but also the direct labor and any fixed or variable overhead that is incurred while producing those finished goods. If those goods are stored at a rented facility, even the cost of the rental will be accounted for as an inventoriable cost.
Step Variable Costs. Step variable costs are costs that are variable in nature, but the cost per unit changes as the company steps to higher levels of production. For example, a company that builds houses will need to buy lumber.ixed costs are a hybrid between variable and fixed costs. This means the cost incurred has a portion that remains the same regardless of production level and a variable portion that changes with the level of production. An example of this type of cost is a cellphone contract.