Inventories are to be maintained at levels which will provide a service level commensurate with legitimate user need and at the lowest ultimate cost to the University. Obsolete and inactive items should be liquidated promptly to minimize losses.
Per the American Institute of Certified Public Accountants, Bulletin 43, Chapter 4 “The primary basis of accounting for inventories is cost, which has been defined generally as the price paid or consideration given to acquire an asset. As applied to inventories, cost means in principle the sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location.”
All UF departments.