The Accounting Average Cost Method is a tool used to account for cost fluctuations in inventory. It calculates the cost of goods sold (COGS) by taking an average of the cost of an item as it is bought and sold. This gives an up-to-date snapshot of the cost of your inventory and helps to ensure that you’re accurately reflecting the value of your inventory when it’s time to generate financial statements. With the Accounting Average Cost Method, you can gain valuable insights into the true cost of your products and make sure you’re not overspending on inventory or leaving cash on the table.