Average inventory level at the end of each period is given by ______.
A)Average inventory = (Beginning inventory + Ending inventory)/ 2
B)Average inventory = (Beginning inventory + Ending inventory)* 2
C)Average inventory = (Beginning inventory - Ending inventory)/ 2
D)Average inventory = (Beginning inventory - Ending inventory)* 2

Question

Quizplus · Accepted Answer

The average inventory level at the end of each period is calculated by adding the beginning and ending inventory levels and dividing by 2. This gives us the average inventory level for the entire period. Using the other options would result in incorrect calculations.

Average Inventory Level at the End of Each Period Is