AVERAGE COST Definition

Bookmark and Share

AVERAGE COST is total cost for all units bought (or produced) divided by the number of units.

Learn new Accounting Terms

CONVENTION is an agreement, principle or statement expressed or implied that is used to solve given types of problems. Conventions allow a standardized approach to problem solving and behavior in certain situations. For example, placing debits on the right and credits on the left of an account is termed an accounting convention.

DISCLOSURE is to reveal information. Financial statement footnotes are one way of providing necessary disclosures.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.