Moving average price (MAP) - How To Discuss

Moving average price (MAP),

Definition of Moving average price (MAP):

1. A succession of averages derived from successive segments (typically of constant size and overlapping) of a series of values.

2. The price assigned to goods using a moving average in accounting records. Businesses are more likely to use a moving average price when accounting for goods that are readily available and have small fluctuations in cost, which reduces variations on margins. For example, a manufacturing company could assign a moving average price to its raw materials and spare parts for its machinery.

How to use Moving average price (MAP) in a sentence?

1. The moving average shows the average value of a stock over time.