Apply your critical$-$thinking ability to the knowledge you have gained to answer the prompt:

Determining the physical quantity that should be included in inventory normally is a simple matter because that amount consists of items in the possession of the company. The cost of inventory includes all necessary expenditures to acquire the inventory and bring it to its desired condition and location for sale or for use in the manufacturing process.

Identify situations in which the physical quantity included in inventory is more difficult than simply determining items in the possession of the company.

In addition to the direct acquisition costs such as the price paid, what other expenditures might be necessary to bring the inventory to its desired condition and location?