Inventory Costing Method is the way by which companies keep track of the cost of their inventory items. It helps businesses to determine how much they should charge customers for those items, as well as estimate what the profit and loss associated with that item will be. This method includes factors such as the cost of goods sold (COGS) and the carrying costs of inventory, such as storage and insurance costs. By using this costing method, companies can make informed decisions about their pricing strategies, allowing them to maximize profits while still providing reasonable prices for customers.