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 two.

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 two.
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Question

Quizplus · Accepted Answer

The formula for average inventory is (Beginning Inventory + Ending Inventory) / 2, which provides a simple average of inventory levels over a period.

Average Inventory Is Computed by Adding the Inventory at the Beginning