An advantage of the weighted average inventory method is that it tends to smooth out the effects of price changes.

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Quizplus · Accepted Answer

The weighted average method takes into account the cost of all units in inventory, not just the most recent purchases or the specific identification of each unit's cost. This helps to spread out the impact of price changes on the overall cost of inventory, resulting in a smoother cost of goods sold calculation.

An Advantage of the Weighted Average Inventory Method Is That