What are Weighted Average Monthly and Weighted Average Daily valuation methods?
A. In the former method, stock valuation is done for every month using the Weighted Average method. The closing stock value of each month is carried forward to the next month as opening stock value. In the latter method, stock is valued daily on weighted average method and the closing stock value of each day is carried forward to the next day as opening stock value. This method is helpful when the market fluctuates widely on a day-to-day basis.
