SKUs should have a cost and quantity
Inventory items should not have a cost. Product instances should.
Each vendor SKU should have a quantity and cost associated with it. (Vendors may sell the same product in different quantities and at different prices.) When a purchase order is checked in, that information should pass to the product instance.
As it is, I cannot order the same item from multiple vendors and I cannot manage volume purchases.
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Craig Kanny commented
I Agree that the SKU's should have the associated cost, which a PO to the vendor should pull from.
The Inventory Item itself benefits from still having its own cost field that can be altered independent of the supply chain. This allows businesses to have a simple method to log the final cost of supplying the product without having to itemize them (Example, Additional small components,Handling costs, labor etc).