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Sometimes referred to as cost of inventory on hand, the inventoriable cost will include not only the cost of purchasing the items that are found in the inventory, but also all expenses that are related to using those items in the creation of products that are ultimately offered for sale.
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.