Average Inventory Cost
Average Inventory Cost is a measure of the total cost of inventory held by a company over a given period of time. It is calculated by dividing the total cost of inventory by the average number of units held in inventory. Average inventory cost is used to determine the cost of goods sold or inventory used for maintenance, as well as to assess the efficiency of inventory management. It is an important metric for maintenance operations and management, as it helps to identify areas of potential cost savings and ensure that inventory is managed in an efficient and cost-effective manner. Average inventory cost is also known as average cost of goods sold (COGS) or average cost of inventory.