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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.
Costs not normally covered by contingency allowances include: costs normally covered by insurance; substitution of better materials (should be covered by a change order); increases in project size or scope; and ââacts of God,ââ such as floods, tornadoes, and earthquakes.esignerâs contingency covers the costs that the designer could incur during the course of a project, such as the cost of services that the designer renders and that were not originally anticipated and the additional construction costs due to changes in the design.