Average Cost Method: Under this method average cost is calculated by following farmula:
Average cost of unit= Total cost of inventory / total number of units
Company should adjust its financial statements for each prior period presented.
Thus, financial statement info about prior periods will be on the same basis as the new accounting pricipal.
It...
These methods are: LIFO (Last in first out) FIFO (First in first out) Average units method where old and new units are combined to calculate inventory.
it will be like inventory at shop. shopkeeper keep on rotating his shop inventory after its safety stock goes down(by ordering ). doing this he is rotating the inventory and generates sales. if shop...