Inventory Standard Costing is a system of cost management used to control the price and value of goods in inventory. This system helps businesses determine their costs for ordering, producing, and storing items, enabling them to manage their budget accordingly. It works by assigning estimated costs to each item in the inventory, including costs such as labor, material, overhead expenses, etc. By using Inventory Standard Costing, businesses are able to get a better understanding of their overall costs and pricing structure, providing crucial insight into their operations and allowing them to make more informed decisions.