Moving Average Method Definition | Becker
Accounting Dictionary
Moving Average Method
The moving average method of inventory accounting computes the weighted average cost after each purchase. A perpetual inventory system is necessary to use the moving average method. See also specific identification method and FIFO method and weighted average method and LIFO method.
Related Terms:
Specific Identification Method [FAR]FIFO Method [FAR]Weighted Average Method [FAR]LIFO Method [FAR]Back to Dictionary