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Average Cost Flow Assumption. A calculation used by companies to monitor inventory goods. The average cost flow assumption is one of a variety of cost flow assumption methods used to determine the cost of goods sold (COGS) and ending inventory. Companies use one or more methods to make certain assumptions regarding which goods have been sold and which remain in inventory.
1 However, the batch has not yet been posted through to the general ledger. 2  In Microsoft Business Solutions-Great Plains 8.0, Inventory Adjust Costs were created in the Inventory Adjust Cost utility and themanual adjustment for Inventory/Cost of Goods sold was not created in the general ledger.