The Average Cost Inventory System is a method of inventory valuation that calculates the cost per item based on the total cost of all items in inventory divided by the total number of units. By using this system, businesses can ensure that their inventory records remain accurate and up-to-date, as the value of each inventory item is automatically adjusted to reflect changes in the cost of materials, labor, or other expenses associated with producing them. With clear and precise valuation of your inventory, you’ll be able to make sound decisions on pricing, sales strategies, and more – giving your business the edge it needs to succeed!