The main difference among weighted average, FIFO, and LIFO accounting is how each calculates inventory and cost of goods sold. Each system is appropriate for different situations.

For example, say an investor acquires 100 shares of a company in year one at $10 per share, and 50 shares of the same stock in year two at $40 per share. To get a weighted average of the price ...

After-tax weighted average cost of capital: The same calculation method as detailed earlier but with the cost of debt modified to reflect the company's tax rate (since interest can be deducted).

A weighted average is a method of finding the average value of a group of numbers, which takes into account how many times each number occurs, or its importance.

The weighted average method requires the accountant to calculate one cost and to use this cost for all calculations. The accountant maintains only a few sheets of paper documenting the calculation.

Responds quickly to recent changes: By focusing on the last N observations, a moving average makes the score highly sensitive to new behavior. If a normally low-risk customer suddenly starts making ...

Weighted average costing is one among many different types of inventory cost accounting methods that companies use. Other common methods include the more common last-in, first-out, or LIFO method, ...