There are 3 costs and up to 7 price levels maintained for inventory items. The 3 costs are current market, last receipt, and weighted average. A description of each follows:

Current Market

This cost can be manually set to reflect the market rate for the product in question. This might be replacement value or any other cost that you'd like to use for comparison or for basing pricing.

Last Receipt

The last cost is the cost of the most recent inventory receipt.

Weighted Average

Weighted average is calculated only when an item is received (or an existing receipt is adjusted). It's an average between the existing cost value (quantity x cost) of the item and the new cost value of the item.

Up to 7 price levels may be set up for items. These are in addition to an item's suggested retail. Level descriptions are set by the user, so they can be anything you'd like. The descriptions are used globally, so they can't be different for different items.