Hi
I was a little bit confused while reading the cost white paper.
Weighted average is calculated by following formula:
Q = Quantity
P = Price
Weighted average = (Q1*P1 + Q2*P2 + Qn*Pn) / (Q1 + Q2 + Qn)
Before the inventory close, "This estimated cost price is also referred to as running average", base on the sample in the white paper, i found the Running average = Weighted averaged.
And i also found a inventory model "Moving average" in the item model group settings. i cannot find the formula for this one.
I'm not sure what's the difference between these average definition