Weighted Average Cost

Weighted Average Cost

Weighted Average Cost is a method of calculating Ending Inventory cost. It takes Cost of Goods Available for Sale and divides it by the total amount of goods from Beginning Inventory and Purchases. This gives a Weighted Average Cost per Unit. A physical count is then performed on the ending inventory to determine the amount of goods left. Finally, this amount is multiplied by Weighted Average Cost per Unit to give an estimate of ending inventory cost.

References

1. Intermediate Accounting 8th Canadian Edition, page 446, Kieso, Weygandt, Warfield, Young, Wiecek, John Wiley & Sons Canada, Ltd, 2007, ISBN 978-0-470-83979-9


Wikimedia Foundation. 2010.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • Weighted average cost of capital — (WACC) (deutsch gewichtete durchschnittliche Kapitalkosten) bezeichnet einen zu den Discounted Cash Flow Verfahren der Unternehmensbewertung gehörenden Ansatz.[1] Die gewichteten durchschnittlichen Kapitalkosten werden von vielen Unternehmen… …   Deutsch Wikipedia

  • Weighted average cost of capital — The weighted average cost of capital (WACC) is the rate that a company is expected to pay to finance its assets. WACC is the minimum return that a company must earn on existing asset base to satisfy its creditors, owners, and other providers of… …   Wikipedia

  • Weighted average cost of carbon — The Weighted average cost of carbon is used in finance to measure a firm s specific cost of carbon. It expresses how much an organization is expending to either reduce carbon emissions internally (wict|abatement) or offsetting externally (carbon… …   Wikipedia

  • Weighted Average Cost Of Capital - WACC — A calculation of a firm s cost of capital in which each category of capital is proportionately weighted. All capital sources common stock, preferred stock, bonds and any other long term debt are included in a WACC calculation. All else equal, the …   Investment dictionary

  • weighted average cost of capital — WACC A method for calculating the average cost of a company s different sources of finance. The WACC is calculated on the assumption that the company will maintain the same debt–equity ratio. Managers should only use the WACC as an appropriate… …   Accounting dictionary

  • weighted average cost of capital — WACC A method for calculating the average cost of a company s different sources of finance. The WACC is calculated on the assumption that the company will maintain the same debt equity ratio Managers should only use the WACC as an appropriate… …   Big dictionary of business and management

  • weighted average cost of capital — svertinis kapitalo kainos vidurkis statusas T sritis turto vertinimas apibrėžtis Diskonto norma, išreiškiama kaip visų verslo subjekto kapitalą sudarančių finansavimo šaltinių rinkos kainų svertinis vidurkis. atitikmenys: angl. weighted average… …   Lithuanian dictionary (lietuvių žodynas)

  • weighted average cost — See: average cost …   Accounting dictionary

  • weighted average cost of capital — ( WACC) expected return on a portfolio of all a firm s securities. Used as a hurdle rate for capital investment. Often the weighted average of the cost of equity and the cost of debt The weights are determined by the relative proportions of… …   Financial and business terms

  • weighted-average cost of capital — ( WACC) expected return on a portfolio of all a firm s securities. Used as a hurdle rate for capital investment. Often the weighted average of the cost of equity and the cost of debt The weights are determined by the relative proportions of… …   Financial and business terms

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”