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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.
BREAKING DOWN 'Tangible Cost'. Tangible costs are often associated with items that also have related intangible costs. An intangible cost consists of a subjective value placed on a circumstance or event in an attempt to quantify its impact.For example, let's examine the costs associated with a customer who has received broken merchandise.The company will usually refund the value of the product to the customer, paying a tangible cost.n intangible cost consists of a subjective value placed on a circumstance or event in an attempt to quantify its impact. For example, let's examine the costs associated with a customer who has received broken merchandise.