• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 15. Keeping Track of Your Invent... > Determining the Average Cost of Inve...

Determining the Average Cost of Inventory Items

The cost of your inventory is determined by the cost of the merchandise that you purchase for resale. If you are a manufacturer, the cost of your inventory is represented by the cost of materials and supplies that will ultimately become part of your finished goods.

As business unfolds on a day-to-day basis, QuickBooks constantly updates the value of your inventory asset account by using a weighted average method of valuing the inventory that you have on hand.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint