Glossary
Average cost
Average cost is the price per piece after adding up everything you bought at different prices and dividing by the count.
What it means for a shop owner
It keeps the maths simple when buying prices keep changing, and it updates with each new delivery. It is one way to value stock, next to first in, first out. Choose one method and stay with it.
A worked example
100 pieces at a cost of 5 and 50 pieces at 8. The total is 900 over 150 pieces, so the average cost is 6.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes