Check out the documentation for the data type decimal. The type is defined by optional parameters p (precision) and s (scale). The latter determines the numbers to the right of the decimal point.
Extract from the documentation (I highlighted the important bit in bold):
s (scale)
The number of decimal digits that are stored to the right of
the decimal point. This number is subtracted from p to determine the
maximum number of digits to the left of the decimal point. Scale must
be a value from 0 through p, and can only be specified if precision is
specified. The default scale is 0 and so 0 <= s <= p. Maximum storage
sizes vary, based on the precision.
Defining a suitable precision and scale fixes your issue.
Sample data
create table MyData
(
Item_Cost nvarchar(100)
);
insert into MyData (Item_Cost) values ('1.25000000000000000000');
Solution
ALTER TABLE MyData Alter Column Item_Cost DECIMAL(10, 3);
Result
Item_Cost
---------
1.250
Fiddle
moneydata type, and it would take care of the trailing zeroes and do no rounding.