Inventory Costing helps a business / company provide a monetary value for the various items that they have in their inventory. Inventories are usually the largest current assets of a business and the proper measurement of their monetary value is absolutely necessary to assure financial statements. Incase inventories are not properly measured, then income and expenses of the company cannot be properly matched and thereby a company could end up making poor or bad business decisions.
Webhuk has a built in Inventory Costing function that can make those calculations in order to help put the true monetary value of inventory items. These calculations are especially important when inventory items are imported and duties need to be paid on these items.
When a business imports an item from a potential vendor overseas, the vendor is invoiced at the purchase rate of the item and not the net rate (inclusive of all duties and customs). Hence making calculations of monetary value per unit basis becomes a little complicated especially when the items have to be sold by the business. Using Webhuk's built in Inventory Costing function, the business can easily calculate a per unit basis cost inorder to decide a final selling price of the imported product.
Further Reading Landed Price Calculation