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Specific costing: In this costing method, the cost of each individual unit of the item is identified and assigned on the basis of the actual / specific cost incurred in procuring the same.
FIFO (First In, First Out): In this costing method, it is assumed that the individual units of items are consumed in the same sequence as they are purchased.
Weighted Moving Average Methods: In weighted moving average methods, the cost of the item is calculated based on a formula which considers the quantity as weight. In this method, based on every transaction of the item, the cost of the item will get updated with the latest cost.
LIFO (Last In, First Out):This method assumes that the items which were received last, are consumed first.
Standard Costing: Can you guess what is the fundamental issue with almost all the methods we discussed above? The fundamental issue is that all the methods focus on correctly recording the cost information
