Inventory costing methods in accounting refer to various techniques used by companies to record the cost of goods sold and the inventory they have on their shelves. These methods are an integral part of a company’s financial planning, as they help determine the actual cost of the items being sold and stocked. There are several different inventory costing methods that can be used, including average-cost, first-in-first-out (FIFO) and last-in-first-out (LIFO). Each approach has its own advantages and disadvantages, so it’s important to consider carefully which method best meets your business needs. With some careful thought and planning, you can select the best solution for your business and ensure that you’re getting the most from your inventory management system.