![]() The WAC Method under Periodic and Perpetual Inventory Systemsīy using the wac method we can get more than one different allocation of inventory costs, under both periodic and perpetual inventory systems.įor a periodic inventory system, the company takes stock of the final inventory and applies costs for the product to determine the cost of the final inventory. Get to know : Optimize Your Putaway processes in logistics The allocation of the costs of available goods is referred to assuming the cost flow.Īnd there are many cost flow assumptions, including the weighted average cost or wac method, in addition to other assumptions such as: The cost of goods available for sale is the bundling of costs, since the costs of goods available for sale are allocated to one of the following two divisions, where: Understanding Costs of Goods Available for Sale Get to know : 6 Inventory Performance Metrics to Improve Inventory Management
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