The average cost basis method is a system of calculating the value of mutual fund positions in a taxable account to determine profit or loss for tax reporting.

The five methods are ranked in order of preference, and each subsequent method can be applied only if the previous methods are inappropriate. Here, the methods at issue were Method 3 and Method 5.

Cost of goods sold (COGS) is defined as the direct costs attributable to the production of the goods sold by a company.