How to calculate average inventory?
TradeGecko
APRIL 26, 2020
What is average inventory? Average inventory refers to the average quantity of stock available in a specified period of time. The purpose of the average inventory formula is to calculate the value of the inventory within that period of time. This is done by finding out the average of the beginning inventory and end, for the accounting period. Understanding average inventory helps businesses determine how much inventory they need to hold at a given point in time.
Let's personalize your content