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What Is Weighted Average Cost?

Weighted Average Cost an inventory valuation method that calculates a single average cost per unit across all purchases during a period. Simpler than FIFO but less precise for individual batch tracking.

How Dashboardly Tracks Weighted Average Cost

Dashboardly calculates Weighted Average Cost from your live TikTok Shop data — pulling actual orders, fees, refunds, and returns so the number you see matches your P&L.

  • Actual order revenue — not estimated or attributed revenue
  • Refunds and returns deducted automatically
  • All platform fees included for profit-level accuracy
  • Historical trends so you spot changes before they hit profit

Frequently asked questions

What is a good Weighted Average Cost?

Simpler to calculate than FIFO. IRS accepted. Best for sellers with stable, similar pricing across batches.

How do I calculate Weighted Average Cost?

WAC = Total Cost of All Units / Total Units Available

Why is my Weighted Average Cost different from what TikTok Shop reports?

TikTok's native reports use attributed metrics with click- and view-through windows. Dashboardly calculates Weighted Average Cost from actual order revenue, deducting refunds and returns for a truer number that matches your real P&L.

When should I track Weighted Average Cost?

Weighted Average Cost is a leading indicator — check it daily if you're running ads or running pricing experiments, weekly otherwise. Dashboardly tracks Weighted Average Cost automatically so you don't have to pull exports.

Related tools & resources

An inventory valuation method that calculates a single average cost per unit across all purchases during a period. Simpler than FIFO but less precise for individual batch tracking.
Definition

An inventory valuation method that calculates a single average cost per unit across all purchases during a period. Simpler than FIFO but less precise for individual batch tracking.

Formula

WAC = Total Cost of All Units / Total Units Available

Example Calculation

(100 units × $5) + (100 units × $6) = $1,100 / 200 units = $5.50 WAC

Benchmarks for TikTok Shop Sellers

Simpler to calculate than FIFO. IRS accepted. Best for sellers with stable, similar pricing across batches.

Why It Matters for TikTok Shop Sellers

An inventory valuation method that calculates a single average cost per unit across all purchases during a period. Simpler than FIFO but less precise for individual batch tracking.

Related Terms

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