MOVING AVERAGE INVENTORY COST
\mˈuːvɪŋ ˈavɹɪd͡ʒ ˈɪnvəntɹˌi kˈɒst], \mˈuːvɪŋ ˈavɹɪdʒ ˈɪnvəntɹˌi kˈɒst], \m_ˈuː_v_ɪ_ŋ ˈa_v__ɹ_ɪ_dʒ ˈɪ_n_v_ə_n_t_ɹ_ˌi k_ˈɒ_s_t]\
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Inventory costing method of averaging after each acquisition. Average unit cost is recalculated by adding the acquired units cost to the in-inventory units cost and dividing by the new total units number. This method is used under a perpetual inventory system.
By Henry Campbell Black
