Inventory Costing System is a structured approach to tracking and allocating the cost of inventory. It helps businesses manage costs and optimize stock levels by providing detailed cost information from the point of purchase to the point of sale. This system utilizes different methods, such as First-In-First-Out (FIFO) and Last-In-First-Out (LIFO), to allocate costs accurately and efficiently. With an organized approach to inventory costing, businesses can gain control over their inventory, increasing their bottom line and contributing to overall success.