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Average Cost Flow Assumption
(redirected from Average Cost Inventory Method)

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Average Cost Flow Assumption
A way to calculate the costs in which one weights the cost of inventory and the cost of goods sold against the value of inventory at the time a report is made. It is also called the average cost flow assumption.


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1%) to approximately $903,000 from approximately $1,028,000 last year, on the comparable weighted average cost inventory method, primarily due to a significant reduction in our fashion yarn inventory.
5 million charge relating to the change in accounting for merchandise from the retail inventory method to the more precise SKU-based weighted average cost inventory method and (iii) an offsetting $0.
7% to $821,000 from $909,000 last year, on the comparable weighted average cost inventory method, primarily due to the combined impact of our accelerated markdown program initiated in fiscal 2005 and the liquidation of a portion of our fashion yarn inventory.
 
 
 
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