The purpose of this paper was to study inventory costing methods in greater detail, by identifying the prevailing method of inventory valuation, consistency in application and harmonization with authoritative accounting practices in the context of Bangladesh. A purposive sample of 111 companies across different non-financial sectors was studied to determine the inventory costing method commonly practiced in Bangladesh. This study found a prevailing use of Weighted Average-Cost method across majority of the sample companies. Results also indicated a certain level of disharmony among firms within the same industry, which implied the absence of uniformity regarding inventory valuation practices in Bangladesh. Furthermore, with the exception of one company, consistency of practice was reported over the period 2007-2013. These findings could be useful for both national and international accounting standard-setting bodies and the respective companies, for implementing new rules, reinforcing or reviewing changes in the current rules of inventory valuation in Bangladesh.
