The assumption that an average cost can be used for all goods of a certain type when calculating the cost of goods sold (COGS) and ending inventory. To determine average cost, all costs required to produce a certain type of goods are added and then the total is divided by the sum of the units sold and the units in inventory.

Related information about average cost flow assumption:

1. Average Cost Flow Assumption Definition | Investopedia
   The average cost flow assumption is one of a variety of cost flow assumption methods used to determine the cost of goods sold (COGS) and ending inventory.
    
2. Inventory Cost Flow Assumptions
   Under the weighted average cost flow assumption all costs are added and divided by the total number of units purchased. At the end of the accounting period, ...
    
3. Average Cost Flow Assumption: Definition from Answers.com
   One of the two cost flow assumptions used under process costing , more often called weighted average cost flow assumption.
    
4. average cost flow assumption Definition | Business Dictionaries from ...
   Business Definition for: average cost flow assumption. Dictionary of Accounting Terms. average cost flow assumption. one of the two cost flow assumptions used ...
    
5. Weighted-Average Cost Flow Assumption
   Weighted-Average Cost Flow Assumption. Financial analysis Print Email. In this method of weighted average cost flow assumptions, the periodic inventory ...
    
6. What is average cost flow assumption? definition and meaning
   Definition of average cost flow assumption: The assumption that an average cost can be used for all goods of a certain type when calculating the cost of goods ...
    
7. weighted-average cost flow assumption - AccountingCoach.com
   Used in the periodic inventory method to compute the value of inventory and the cost of goods sold. This average cost is based.
    
8. Average Cost Flow Assumption financial definition of Average Cost ...
   Average Cost Flow Assumption. Also found in: Wikipedia, 0.01 sec. Average Cost Flow Assumption. A way to calculate the costs in which one weights the cost of ...