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How is average cost of an item affected when a negative quantity inventory adjustment is created?

edited Dec 7, 2022 11:04AM in Ask A Guru 10 comments

What is the effect on the average cost of an item when a negative quantity inventory adjustment is created?

For example, if AItem had 10 items in inventory, and an inventory adjustment was made to reduce the number of items to 5, what would be the effect on the average cost of the item?

What would be the effect on the average cost of the AItem? Also, what kind of calculation logic is used to calculate it?

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