How to calculate Average value stock value - MC.B

Hi All,
When we execute T code MC.B  we get material analysis report . In it we have a column AVG VAL STOCK VALUE.
Can some one explain how it is calculated. I see the formula
The average stock value of the valuated stock is calculated using the formula:
         beginning stock value + n stock value at month´s end
                                n + 1
Can Some one explain how it is calculated and what 'N' stands for?
Thanks,
Vengal Rao.

MC.B is inventory turnover.
In the selection screen you enter how many periods to analyze.
by default it is today 06/11 to 08/11
n is the number of periods
so you have a beginning stock of period 06/11
+ end stock of period 06/11
+ end stock of period 07/11
+ end stock of period 08/11 (which is todays stock)
so the formula is:
beginning stock value + 3 stock value at month´s end
3 + 1

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