Explain how a company can change its method of costing inventory?

Inventory costing is an accounting technique that allows a
business financial manager to change the way inventory is recorded on the company’s
books. The primary reason and purpose to change an inventory costing method is so that
it has a positive financial impact on the company’s financial statements however the
accountant will need to make sure that any change is implemented consistently across the
company’s books. The different kinds of inventory costing methods
are:

1. First in First Out
   (FIFO)


2. Last in Last out
    (LILO)


3. Specific identification
   method


4. Average cost
   method