- The Cost Reporting Form is an insurance form that a company with irregular inventory fills out to obtain insurance coverage in variable amounts.
- Businesses must maintain the correct amount of commercial property insurance to cover them against various hazards.
- Some businesses hold inventories that fluctuate throughout the year due to supply and demand reasons, seasonal factors and consumer needs.
- Using a standard cost report form, a business reports to its insurance company the quantity and value of its inventory.
- By regularly providing a value reporting form, a company can avoid additional costs and risks associated with reinsurance or underinsurance.