One can disagree on the following lines with respect to the cost of inventory:

(a) It includes cost of purchase, cost of conversion and other cost in bringing the inventory into present location and condition;

(b) It includes costs such as import duties, non-refundable taxes, transport and handling costs and any other directly attributable costs;

(c) It includes costs such as abnormal amount of wasted materials, storage costs, administrative costs and selling costs.

(d) It can be measured using either standard cost method or retail price method.