Actual costing

Inventory valuation method under which actual amount of expenses related to inventory paid or incurred are taken as cost of stock or inventory. The method is completely opposite to standard costing, estimated costing or normal costing method. Accrual cost of an item may include direct material, direct labor and indirect overheads

Compare with Standard costing or estimated costing

Standard costing or estimated costing 
Standard costing takes into consideration the normal level of expenses (direct and indirect expenses) related to inventory incurred or paid are taken as the cost of inventory not actual amount paid or incurred. Standard costing is regularly reviewed and if necessary revised after taking into account the current financial posting and condition of an business entity