• Cost of purchase, including the purchase price, any import duties or non-recoverable taxes, and cost directly attributable to the acquisition of inventory (like transport, handling) less any trade discounts, rebates, and so on.
• Cost of conversion, including the costs of direct labor used, a systematic allocation of variable production overheads, a systematic allocation of fixes production overheads based on normal production capacity, scraps that are common to the process, downtimes that are predicted in the routines, and so on.