Average inventory is computed by adding the inventory at the beginning of the period to the inventory at the end of the period and dividing by 2.

Name: Average inventory is computed by adding the inventory at the beginning of the period to the inventory at the end of the period and dividing by 2.
Brand: Quizplus
Rating: 4.8 (41 reviews)

Question

Quizplus · Accepted Answer

This is correct. Average inventory is calculated by taking the sum of inventory at the beginning and end of the period and dividing by 2.

Average Inventory Is Computed by Adding the Inventory at the Beginning