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Which average price method takes into account the total quantities and total costs while calculating the average price?
  • a)
    Simple Average Method
  • b)
    Weighted Average Method
  • c)
    Periodical Simple Average Method
  • d)
    Periodic Weighted Average Method
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Which average price method takes into account the total quantities and...
The correct answer is Option B: Weighted Average Method. This method takes into account the total quantities and total costs while calculating the average price. It is calculated by dividing the total cost by the total quantity to arrive at the value. Weighted Average Method avoids price fluctuations and gives an acceptable figure for stock.
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Which average price method takes into account the total quantities and total costs while calculating the average price?a)Simple Average Methodb)Weighted Average Methodc)Periodical Simple Average Methodd)Periodic Weighted Average MethodCorrect answer is option 'B'. Can you explain this answer?
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