Average cost method is an inventory valuation method in accounting that assigns a cost to inventory based on the average cost of goods available for sale during a period. Instead of tracking individual purchase prices, the method applies an average unit cost to both cost of goods sold (COGS) and ending inventory.
Average cost method is an inventory valuation method in accounting that assigns a cost to inventory based on the average cost of goods available for sale during a period. Instead of tracking individual purchase prices, the method applies an average unit cost to both cost of goods sold (COGS) and ending inventory.
Source: Wikipedia "Average cost method" · CC BY-SA 4.0
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