When prices fluctuate widely, the method of pricing that smooths out the effects of fluctuations is ____?
جب قیمتوں میں بڑے پیمانے پر اتار چڑھاؤ آتا ہے، تو قیمتوں کا تعین کرنے کا طریقہ جو اتار چڑھاو کے اثرات کو ہموار کرتا ہے ____ ہے؟
- Weighted average
- Simple average
- FIFO
- LIFO
Explanation
When prices fluctuate widely, the method of pricing that smooths out the effects of fluctuations is weighted average (average cost method).
This method calculates an average cost per unit by weighing each purchase according to its quantity, thereby averaging out the impact of price changes over time.
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