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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VARIABLE INTEREST RATE is an interest rate that moves up and down based on the changes of an underlying interest rate index, e.g. a credit card might have a variable rate that is a certain spread over the prime rate.

WIDGET is a device that is very useful for a particular job. Often used within a name of a fictitious company.

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