What does RWAC mean in UNCLASSIFIED

RWAC stands for Running Weighted Average Cost.

RWAC is primarily used in the field of accounting and is often used to manage the costs associated with inventory items. It may also help track the cost of other items which have fluctuating values over time.

The weighted average cost is calculated by taking all incoming costs and multiplying them by their respective quantities. This gives the total cost of all units purchased in a specified period of time and divides it by the total quantity of those units purchased during that same period.

An example of using RWAC would be when calculating the average cost per item for a retail business that purchases their merchandise from different suppliers at varying prices throughout the month. By using this method, they can determine how much each item costs on average, despite having multiple purchase prices from different suppliers during the given month or period.

Businesses can benefit from using RWAC because it helps create accurate financial records which enable businesses to make better purchasing decisions based on current stock levels, usage trends, and pricing data. Additionally, this approach allows businesses to easily project future inventory costs without the need to manually adjust existing cost figures every time there is a price change.