Average Cost Flow Assumption

Business, Legal & Accounting Glossary

Definition: Average Cost Flow Assumption


Average Cost Flow Assumption


Full Definition of Average Cost Flow Assumption


The assumption that an average cost can be used for all goods of a certain type when calculating the cost of goods sold (COGS) and ending inventory. To determine average cost, all costs required to produce a certain type of goods are added and then the total is divided by the sum of the units sold and the units in inventory.


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Average Cost Flow Assumption. PayrollHeaven.com. Retrieved December 02, 2021
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Definition Sources


Definitions for Average Cost Flow Assumption are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.