WAC

WAC, or Weighted Average Cost, refers to the average cost of inventory or raw materials, calculated by considering both the cost of each batch and the quantity on hand. It’s used in accounting to determine the value of inventory and the cost of goods sold, smoothing out price fluctuations over time. Essentially, WAC provides a consistent and fair method for assigning an overall average cost to items in stock, helping businesses accurately reflect their expenses and profit margins.