JAMB Commerce 2022 Paper

Concept:Average stock is the mean value of stock held during a given accounting period.Explanation:Opening stock is the value of stock available at the beginning of the period.Closing stock is the value of stock remaining at the end of the period.Average stock represents the typical stock level between these two points.To derive it, add the opening stock to the closing stock first.Then, divide the total by $2$ to obtain the mean.Hence, the formula is:$$\text{Average Stock} = \frac{\text{Opening Stock} + \text{Closing Stock}}{2}$$This means the correct derivation is adding opening stock to closing stock, then dividing by $2$.Answer:C. Opening stock to closing stock divided by $2$