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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.
Variable Costs: Variable costs are costs that change with the amount of work. Examples of variable costs are hourly labor, the cost of material, the cost of supply, fuel for bulldozer etc. Direct Costs: Direct costs are expenses that are billed directly to the project. Examples of direct costs are team travel expenses, team wages, the cost of material used in a project, costs incurred for recognition and awards materials used to construct a building.