Weighted-average cost
In accounting, weighted-average cost means the cost-flow assumption that every unit carries the average cost of what is on hand — in a perpetual record, recomputed after each purchase and applied to each issue.
Also called Average cost.
Authority: ASC 330-10-35-1B (opens in a new tab). Sources
The lesson that teaches this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- average price (that is a selling price)
Nearby in the catalog
No component names this concept outright. These sit in the same part of the system.
2Cards
Family specAlso in Statements
Defined in Lexicon. This page is generated from that document, so the two can't disagree.