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Consistent product cost is used.
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∙ 11y ago
The weighted average method is advantageous because it smoothens out fluctuations in inventory costs by incorporating both old and new cost data. It is simple to calculate and less subject to distortions from extreme price changes. This method is also compliant with generally accepted accounting principles (GAAP).
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What are the advantages and disadvantages of moving average method?
Advantages of moving average method include simplicity, easy implementation, and ability to smooth out short-term fluctuations in data. Disadvantages include potential lag in forecasting, inability to capture sudden changes in data patterns, and reliance on historical data which may not always reflect future trends accurately.
What are the advantages of Telling method as a teaching method?
The Telling method, also known as the lecture method, allows instructors to share a large amount of information with students in a structured manner. It is useful for delivering content quickly to a large group of learners. Additionally, it can provide clarity and coherence to complex topics.
What are the advantages and disadvantages of the role play method of teaching?
Some advantages of the role play method of teaching include:Good means of communicatingWay of practicing vocabulary skillsHelps to build confidenceCan encourage teamwork and group interactionSupportive environmentSome disadvantages of the role play method of teaching include:EmbarrassmentShynessDiscomfortDoesn't suit all individualsCan damage confidence
Advantages of rast method?
The RAST method, or radioallergosorbent test, is advantageous because it is a blood test used to detect specific allergens that may be causing allergic reactions. It is less invasive than skin prick testing and is helpful when a patient cannot discontinue antihistamines prior to testing. RAST can also provide quantitative results, indicating the level of specific IgE antibodies present in the blood.
What are the advantages of the direct arc melting method?
The direct arc melting method offers high purity of materials, allows for precise control of the composition, and enables the production of custom alloys. Additionally, it has the capability of melting a wide range of materials, including refractory metals and reactive elements.
What is the difference between Average method vs weighted average method?
in weighted average method we assigns the weight to the averages while in average methods we dnt do this
What are the advantages and disadvantages of weighted average cost?
The advantages of using weighted average cost is that it is consistent, the formula is very simple to use and their is less paperwork. This method, however, makes it difficult to follow the ups and downs of the market if prices change frequently.
What is Weighted Average of Inventory Valuation Method?
Weighted average inventory valuation method is method in which inventory purchased at any price is put together to calculate one price for allocation in contrast to FIFO or LIFO.
The inventory valuation method that tends to smooth out erratic changes in costs is?
Weighted average method which requires to use the weighted average cost per unit of inventory at the time of each sale.
What is the valuation method used for valuating inventory as per Indian accounting standards?
Majority of the companies are following weighted average method to value inventories. In India, the Income Tax authorities only allow FIFO & Weighted Average Method.
What is advantages and disadvantages of weighted average?
The advantages of using weighted averages are that it smooths out fluctuations due to statistical outliers. The disadvantage is that this gives a uniformity in the statistics and can make it difficult to project trends.
Inventory valuation method that tends to smooth out erratic changes in cost?
Weighted Average
What stock valuation method is acceptable according to the accounting standard fifo?
First stock should consumed first and then other stock. Majority of the companies are following weighted average method to value inventories. In India, the Income Tax authorities only allow FIFO & Weighted Average Method.
How do you calculate rainfall using the thiessen polygon method?
Thiessen Polygon method is a weighted average mean method used to calculate average rainfall. The catchment area is divided into subcatchments using the Thiessen polygon method.
What is weighted average method of inventory management?
The total value of material divided by the total quantiy of stock
What are the advantages of weighted average?
More importance can be attached to observations which are either of greater importance, accuracy (lesser variance).
What is the difference of evaluation of inventory between weighted average method and FIFO method?
A method of inventory accounting in which the oldest remaining items are assumed to have been the first sold. In a period of rising prices, this method yields a higher ending inventory, a lower cost of goods sold, a higher gross profit (assuming constant price), and a higher taxable income. Also called FIFO.Method in calculation in which the weighted averagezzor the period is the cost of the goods available for sale divided by the number of units available for sale. When the perpetual inventory system is used, the weighted average method is called the moving average method.
