When prices fluctuate widely, the method of pricing that smooths out the effects of fluctuations is ____?

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When prices fluctuate widely, the method of pricing that smooths out the effects of fluctuations is ____? Answer: Weighted average

When prices fluctuate widely, the method of pricing that smooths out the effects of these fluctuations is the Weighted Average Method. This method calculates a new average cost for inventory after each purchase, which dilutes the impact of extreme price changes on the overall cost of goods.

Question context

This question is part of 🌍 Current Affairs within the broader 🌐 Current Affairs & GK subject and appears in the SPSC – Sindh Public Service Commission preparation collection. Reviewing the answer together with nearby questions helps reinforce the underlying concept and identify how it may appear in competitive exams.