Costing methods are techniques used by businesses to determine the costs associated with producing goods or services. Common methods include job costing, where costs are assigned to specific projects, and process costing, which averages costs over a continuous production process. These methods help companies set prices, manage budgets, and analyze profitability. Another important costing method is activity-based costing (ABC), which allocates costs based on actual activities that drive expenses. This approach provides more accurate cost information by linking costs to specific activities, allowing businesses to identify inefficiencies and make informed decisions about resource allocation and pricing strategies.