Question

When prices fluctuate widely, the method that will smooth out the effect of fluctuations is​

Answer 1

Answer:

Average price method is considered to be the best method when prices fluctuate considerably because this method tends to smooth out fluctuations in prices. Issue prices are not to be calculated each time issues are made.

Answer 2

Answer:

Average price method is considered to be the best method when prices fluctuate considerably because this method tends to smooth out the fluctuations in prices.

Explanation:

Average cost method

Average cost method  also referred to as the weighted average cost method, the average-cost method is an accounting formula used when calculating inventory value. This figure is reached by dividing the total cost of goods by the total number of goods over a specific accounting cycle.