the vendor's invoice price and transportation are the most visible costs of purchased goods. less obvious are what may be called acquisition costs the costs of performing the functions of functions of purchasing receiving unpacking inspecting insuring storing and accounting practical limitations affect the treatment of these costs because adjusting each invoice for all acquisition costs involves efforts that may outweigh the benefit of accurate cost measurement. therefore materials are commonly carried at the invoice price paid to the vendor and acquisition costs and price adjustments are treated as factory overhead.