Weighted average cost

1. Accounting - inventory.

A method of inventory accounting that values inventory used during the reporting period at the weighted average cost of all inventory held.

Alternative methods include First in first out (FIFO), and Last in first out (LIFO).

2.

Valuation or costing of any item, using the weighted average method.

See also

• First in first out
• IAS 2
• Inventory
• Inventory management
• Last in first out
• Stock
• Weighted average
• Weighted average cost of capital