Asked by Faustine Hudson on Jun 29, 2024
Verified
Average inventory is computed by adding the inventory at the beginning of the period to the inventory at the end of the period and dividing by 2.
Average Inventory
The mean value of a company's inventory over a specified period, often used to calculate turnover rates and efficiency in managing stock levels.
- Understand the importance and components of inventory control systems, including physical counts and the use of internal documents.
Verified Answer
ZK
Zybrea KnightJul 02, 2024
Final Answer :
True
Explanation :
This is correct. Average inventory is calculated by taking the sum of inventory at the beginning and end of the period and dividing by 2.
Learning Objectives
- Understand the importance and components of inventory control systems, including physical counts and the use of internal documents.
Related questions
Use of the Retail Inventory Method Requires Taking a Physical ...
Under a Perpetual Inventory System, the Amount of Each Type ...
Describe the Internal Controls That Must Be Applied When Taking ...
Establishes an Initial Record of the Receipt of Inventory ...
Authorizes the Purchase of Inventory from an Approved Vendor ...