Accounting for Inventory

Name: Accounting for Inventory
Availability: InStock
Rating: 5.00 (4 reviews)

Almost every type of business has inventories, and the various inventory accounting methods can make otherwise identical companies appear completely different.

Discuss what costs are included in inventory.
Review the main inventory accounting methods.
Demonstrate how companies will report different results based on the inventory accounting choice.

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Corporate Finance Institute

Accounting for Inventory

Overview

Accounting for Inventory Course Overview

Understanding accounting is crucial to becoming a world-class financial professional. As part of this, it’s important to understand how accounting choices impact comparability and profitability. In this course, we’ll cover the main ways companies account for inventory. We’ll then analyze various metrics and see how they differ based upon the inventory accounting choice.

Who Should Take This Course?

Accounting is the language of business, so it’s critical for finance professionals to understand how different accounting rules impact financial results. This course is best suited for intermediate learners. Professionals who have a basic grounding in accounting and want to deepen their knowledge of inventory methods. It is ideal for those who use or analyze financial statements, including investment bankers, equity research analysts, and FP&A professionals.

Advanced Preparation:
Learners must have access to Microsoft Excel (or a compatible spreadsheet program such as Google Sheets or Excel Online) to complete the exercises and follow along with demonstrations. Familiarity with basic Excel functions is helpful but not required.

Accounting for Inventory Learning Objectives

Which costs are included in inventory and which should be excluded
Discuss the main inventory accounting methodologies
Analysis of margins and ratios between the FIFO and LIFO methods
Converting the LIFO method to FIFO
Understand how a LIFO liquidation may occur

Prerequisite Courses

Recommended courses to complete before taking this course.

What You'll Learn

Lesson

Multimedia

Exams

Files

This Course is Part of the Following Programs

Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.

Accounting for Financial Analysts Specialization

Skills learned Accounting, Financial Analysis, Reading Financial Statements and more
Career prep Financial Planning & Analysis (FP&A), Corporate Development, Investment Banking, Private Equity, Equity Research, and more.

Learn More

What Our Members Say

I'm with more accounting in CFI

I'm with more accounting in CFI, the first step is AFAS specialization. we waiting AFAS certificate before the end of 2024

Lazhar Ben Ammar Issaoui

A clear and concise overview of a complex topic

This introductory course on accounting for inventory provided a clear and concise overview of a complex topic. The instructor, Scott, was engaging and his extensive experience in the financial services sector lent credibility to the material. The course effectively covered key concepts, including the different types of inventory, inventory costs, and the various valuation methods (FIFO, LIFO, weighted average, and specific identification). The visual aids were helpful in understanding the concepts, and the explanations were easy to follow, even for someone with limited accounting knowledge. The comparison of IFRS and US GAAP accounting standards was particularly valuable. I especially appreciated the section on LIFO liquidation and the practical examples provided. Overall, this course is a highly recommended starting point for anyone looking to gain a foundational understanding of inventory accounting.

Dr Gregory Gray Jr

Amazing

Understood everything about the inventory valuation clearly and without fuss!

Chloe Farmaki

Great course

A short course that helps to increase general accounting knowledge, which is great!

Peter Herszenyi

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Can I download the Excel files and financial modeling templates for the course?

Absolutely! All the files and templates needed in a course are available for download. Just look for a module that shows Downloadable Files within the course dashboard. See here for a visual guide on how to do this.

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Students are required to complete an online assessment (Multiple choice questions, Fill-in-the-Blanks, and Excel Questions) at the end of each course. You can take the exams on your own schedule and will need to earn at least 80% to pass the course and earn your certificate of course completion. Please note that course exams can be repeated as many times as you need. Students are also required to complete the FMVA® final exam to earn their certification. How to Take a Qualified Assessment

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Accounting for Inventory

Accounting for Inventory Course Overview

Who Should Take This Course?

Accounting for Inventory Learning Objectives

What You'll Learn

Introduction

FIFO & LIFO

Summary

This Course is Part of the Following Programs

Accounting for Financial Analysts Specialization

What Our Members Say

Lazhar Ben Ammar Issaoui

Dr Gregory Gray Jr

Chloe Farmaki

Peter Herszenyi

Frequently Asked Questions