The as-purchased price is your inventory cost and is not altered by yield percentages.

Question

Quizplus · Accepted Answer

The as-purchased price, also known as the purchase cost, is the original price paid for goods purchased for inventory. It is not altered by yield percentages, which simply refer to the amount of usable product obtained from a given raw material or ingredient. Yield percentages can impact the actual cost per unit produced or sold, but they do not affect the cost of the initial inventory purchase.

The As-Purchased Price Is Your Inventory Cost and Is Not