Acquisition Cost

Acquisition costs are costs paid to the vendor when the item is purchased.  Non-acquisition costs are costs such as inspection costs that are associated with purchasing the item but are not paid to the vendor.  The purchase price variance will be calculated against the total of all acquisition costs.  The acquisition cost flag determines whether a cost element is considered an acquisition or non-acquisition cost.  The total standard cost of a purchased item, which is used to measure its inventory value, is the sum of its acquisition and non-acquisition costs.  Acquisition costs are entered for an item through the Part Costs Maintenance conversation in Design Engineering.