Skip to content

ERP glossary · Inventory

What is Weighted average cost?

Definition

Weighted average cost values stock at the average price of all units on hand, recalculated each time new stock is received.

It smooths out price swings, so each issue is valued at the same running average rather than at a specific purchase.

Related terms

All glossary terms

Start running your business on IndustryX today

Free forever* for 2 users. Upgrade when you grow, and your data comes with you.