The Weighted Average Cost Formula Accounting (WACFA) is a tool used to calculate the average cost of inventory items over various levels of purchases. It takes into account the number, value, and price of inventory items and then uses the data to determine an average across all those components. WACFA is especially advantageous for evaluating trends in inventory prices, helping businesses make informed decisions about their pricing strategies. By leveraging historical purchase data to analyze price dynamics, this formula can help companies save money and maximize profits by accurately assessing the true costs associated with inventory purchases.