Costing Method

costing method refers to the method used to calculate the cost of goods or services being transported. There are several costing methods that can be used, including: 

• First In, First Out (FIFO): This method assumes that the first goods or services received are the first to be shipped, and therefore the cost of these goods is used to calculate the cost of the shipment. 
• Last In, First Out (LIFO): This method assumes that the last goods or services received are the first to be shipped, and therefore the cost of these goods is used to calculate the cost of the shipment. 
• Average Cost Method: This method calculates the cost of the shipment by taking the average cost of all the goods or services being shipped. 
• Specific Identification Method: This method identifies and assigns the cost of specific goods or services being shipped. 

The costing method used can have a significant impact on the cost of the shipment, and different methods may be more appropriate for different types of goods or services. Shippers and carriers must work together to determine the most appropriate costing method for each shipment to ensure accurate and fair pricing.