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What Are the Components of Total Cost? Give Specific Examples

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What are the components of total cost? Give specific examples.


Definitions:

Merchandise Inventory

Goods that a retailer, wholesaler, or distributor holds for the purpose of resale to customers.

Chart of Accounts

A systematic list of all account titles and numbers being used by an organization to organize its financial transactions and to prepare financial reports.

FOB Destination

A shipping term indicating that the seller bears the shipping costs and retains ownership until the goods reach the buyer.

Trade Discount

A reduction in the list price granted by a supplier to a buyer, often based on the volume of goods purchased or as a promotion.

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