Initial cost

Initial cost means the money required for the capital construction or renovation of a major facility [Law Insider].
The initial cost is the average cost of purchasing or manufacturing your stock. A product’s initial cost helps track the business’ health through cost tracking, profit margin reporting, and determining the total stock value.
A product’s initial cost depends on its buying price and different factors.

Here are some reasons why the initial cost might be higher or lower than its buying price:
• Discounts. If your vendor gives you a discount, it reduces your product’s initial cost.
• Landed costs. If your vendor ships your products, you incur shipping and handling fees. These fees add to your product’s initial cost.
• Multiple vendor costs. The prices of your products from different vendors might differ significantly. The price differences add to or reduce the product’s initial cost [QuickBooks].

Sources:

Initial cost definition. Law Insider. Retrieved from: https://www.lawinsider.com/dictionary/initial-cost

Learn about initial cost in QuickBooks Commerce. QuickBooks. Retrieved from: https://quickbooks.intuit.com/learn-support/en-us/help-article/inventory-management/learn-initial-cost-quickbooks-commerce/L0rdb8dBF_US_en_US