3) How it's changed: While affirmative action is usually spoken of in general terms, there is no singular policy or implementation of the ways in which affirmative action take shape in government organizations, colleges and corporations varies.
(December 2009). Under the 'Average Cost Method', it is assumed that the cost of inventory is based on the average cost of the goods available for sale during the period. The average cost is computed by dividing the total cost of goods available for sale by the total units available for sale.
This technique is also referred to as moving average method. Using the data from above example we can compute the cost of goods sold and the cost of ending inventory as follows: Cost of goods sold: $4,092 + $5,158 + $14722 + $2,103 = $26,075 (Total of sales column) Cost of ending inventory: $9,665 (Balance column) The use of average costing method in perpetual inventory system is not common among companies. The main advantage of using average costing method is that it is simple and easy to apply.