AVERAGE COST METHOD Definition

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AVERAGE COST METHOD is using a weighted average cost for items in inventory rather than actual cost for each specific item.

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FIXED CHARGE is those expenses incurred each time a batch of product is produced. Primarily consists of ordering cost for the raw material, engineering costs for machine setup and preparation for the production run, and work order processing cost; also known as SETUP COST.

GENERAL PARTNERSHIP is one or more partners who are jointly and severally responsible or liable for the debts of the partnership.

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