average cost inventory method

average cost inventory method definition - finance
A method of pricing inventory at the average cost of goods that are available for sale during the period. The average cost is computed by dividing the total cost of goods available for sale by the total units available for sale. The average unit cost is applied to the units in ending inventory.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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