What Is Meant by Average Cost?
Average cost is the inventory costing method by which a weighted average cost, determined by dividing the total cost of goods available for sale by the number of units available for sale, is applied to both the cost of goods sold and the ending inventory.
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True contributes to his own finance dictionary, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.