Business, Legal & Accounting Glossary
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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This glossary post was last updated: 20th November, 2021 | 0 Views.