Average Cost Pricing

Knowledge Center

Summary, forum, best practices, expert tips and information sources.


What is Average Cost Pricing? Meaning.

Average Cost Pricing is a cost pricing method that calculates the average unit cost by dividing the total cost of goods available for sale by the total units available for sale. This is done by applying a weighted-average approach to all the units in the (ending) inventory.

The Average Costing method levels out the effects of cost increases and decreases, because the cost for the ending inventory calculated under the method is influenced by all the prices paid during the year and by the beginning inventory price. The method disregards the fact that more recent costs are more relevant for income measurement and management decision-making.

Average Cost Pricing Special Interest Group

Special Interest Group (29 members)

Forum about Average Cost Pricing  

The most recent topics about: Average Cost Pricing.

🔥 NEW Advanced Micro Economics
Why do most of the firms apply average cost pricing rather than marginal cost pricing criterion in parctices? (...)
0 reactions
Best Practices about Average Cost Pricing

Here you will find the most valuable ideas and practical suggestions.

Expert Tips about Average Cost Pricing

Here you will find professional advices by experts.

Information Sources about Average Cost Pricing

Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.

Compare also: Variable Costing  |  Absorption Costing

Special Interest Group Leader

Are you an expert in Average Cost Pricing? Sign up for free

Link to this knowledge center

Copy this code to your web site:


Return to Management Hub: Decision-making & Valuation  |  Finance & Investing

More on Management  |  Return to Management Dictionary  | 


This ends our Average Cost Pricing summary and forum.

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2020 12manage - The Executive Fast Track. V15.6 - Last updated: 26-9-2020. All names of their owners.