Average Cost Flow Assumption

(redirected from Average Cost Inventory Method)

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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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.