Cost Price - precise definition

Hello I have a question regarding the term "cost price." When I create a counting Journal in Dynamics 365 for F&O, there is a tab called "Lines Detail" -> if I open it I can see the field "cost price." Usually I thought this represents the value of our Item which we have bought (so it corresponds to the price of the product receipt). But that is not true of course, since the cost price refers to the price of the released product (in the modul Product Information Management) under the manage cost tab. My question is what does cost price" means specifically? Is it the cost we have to pay in order to hold Item X in the inventory? It would be great if someone could help me, because I was Looking for a Definition and explanation, but I could not find something.

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  • If the item is set up using "Standard Cost" then cost is the end-all cost of the item in inventory.  If you purchase or produce the item and realize a different cost then the difference is sent to a Purchase price variance or Manufacturing variance account and the cost price is put into inventory.

    If the item is weighed average or FIFO/LIFO then this is not necessarily representative of the actual cost that will be used.  In the case of an inventory adjustment (up) this will be used as the cost to add inventory.