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A flow weighted average is found by dividing the total load over the estimation time by the total stream flow.

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Q: What is a flow weighted average?
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In an inflationary environment which inventory cost flow assumption would produce the lowest inventory balance?

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What is a time weighted average?

Time Weighted Average is an average using time as the weight. For example assume 3 gallons flows for 5 minutes then 10 gals for 5 mins then 7gals for 15 mins. The time-weighted average of flow over the total time is [(3x5)+(10x5)+(7x15)] all divided by (5+5+15) and equals 5 gallons per minute.


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You can't convert an unweighted average into a weighted average simply by adding something. You have to do the whole calculation for the weighted average.


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Is fifo the inventory costing method that follows the physical flow of the goods?

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What is the abbreviation for weighted average?

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