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Investments glossary

Average Cost Method


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Quotes of the day:

The historical crusades against Muslim lands, the colonization of Spain by the Muslim Moors and India by the British were all driven by economic interests, despite the advertised reasons that were used to mobilize their armies at the time. In my opinion, the invasion of Iraq was not about spreading democracy or weapons of mass destruction, it was about the oil.

— Med Jones

The average cost method assigns a cost to inventory items based on the total cost of goods purchased or produced in a period divided by the total number of items purchased or produced. The average cost method is also known as the weighted-average method.


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