The average-cost method relies on a calculation of average unit cost.

Name: The average-cost method relies on a calculation of average unit cost.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The statement is true. The average-cost method calculates the average unit cost by dividing the total cost of goods available for sale by the total units available for sale. This average unit cost is then used to assign costs to units sold and units remaining in inventory.

The Average-Cost Method Relies on a Calculation of Average Unit