One calculates the average value of stock by adding the stock value at the beginning of an accounting period to the value at the end ,and dividing by two.
http://financial-dictionary.thefreedicti... .
The formula for the efficiency stock is:
cost of goods sold/average stock
I know what the "cost of goods sold" is, but what does "average stock" mean? It's not mentioned anywhere else in my textbook. Also, where is it indicated on a balance sheet?
Thank you!
