Inventory Costing Methods That You Might Not Know About

Inventory costing or valuation is an accounting concept that has a direct impact on your gross profit and thus taxable income. Methods of valuing inventory are simply different cost-flow assumptions about how to allocate your cost of goods available for sale.

We’ll start by explaining why inventory costing is important. Next, we’ll cover popular and uncommon inventory methods. Finally, we’ll finish with inventory costing methods that are not based on costs and yet others that are based on estimates.


Read the entire blog: Inventory Costing Methods

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