When the Average Cost Formula Is Applied in a Periodic

question 149

True/False

When the average cost formula is applied in a periodic inventory system, the sale of goods during the year will change the unit cost used for calculating ending inventory.

---

Definitions:

Standard Deviation

A quantitative assessment that determines the range of difference or dispersion in a collection of data.

Mean

It is the central value of a discrete set of numbers, specifically, the sum of the values divided by the number of values.

Sample Data

A subset of data collected from a larger population, used for analysis and inference.

Frequency Distribution

A mathematical representation showing the number of occurrences of each unique value in a dataset.