Accounting for Inventory

Name: Accounting for Inventory
Rating: 5.00 (2 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.

Accounting for Inventory Learning Objectives

Upon completing this course, you will be able to:

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.

Who Should Take This Course?

Accounting is the language of business so it’s critical for finance professionals to have a solid understanding of different accounting rules since these differences can lead to different financial results. This course is perfect for anyone that uses financial statements, including investment bankers, equity research analysts, and financial planning and analysis (FP&A) professionals.

Courses we recommend you take in advance

These prerequisite courses are optional, but we recommend you complete the stated prep course(s) or possess the equivalent knowledge prior to enrolling in 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.

Financial Modeling & Valuation Analyst (FMVA®) Certification

Skills Learned Financial modeling and valuation, sensitivity analysis, strategy
Career Prep Investment banking and equity research, FP&A, corporate development

Learn More

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

Frequently Asked Questions

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All of our certification programs are open to students and professionals in various industries and levels of experience. Our curriculum is designed to teach what you need to know from basic fundamentals to advanced practical case studies. To take the courses and complete the exercises, students will only need access to a PC and/or Mac, Microsoft Suite (2016 or newer), and a stable internet connection. Click here to view the Technical Requirements

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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You will have yearly access to the courses as long as you maintain an active subscription. All the courses are self-paced as well so you can take your time in learning without worrying about any deadlines. Click here to compare our available enrollment options.

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Yes, CFI is accredited by the Better Business Bureau® (BBB) to maintain training standards, the CPA Institutions in Canada, and the National Association of State Boards of Accountancy (NASBA) in the USA. Most of our courses qualify for verified CPE credits for CPA charter holders. Please refer to this page to view all available CPE credits.

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All our online courses are priced in USD. As this is a recurring payment, we accept all major credit and debit cards including Visa, MasterCard, and American Express.

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Students must complete all the video lessons, quizzes, and final assessments in each course. You can retake the assessments as many times as necessary until you reach an 80% passing grade. For more information on how to earn a course certificate, click HERE.

How are the exams conducted?

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

Can I email the instructor if I have questions?

While the courses are designed mainly for self-study, we are happy to provide email assistance for general or technical support inquiries. The Full Immersion bundles include a premium email support function that allows you to communicate directly with in-house experts regarding course content. This is one of the key features that sets the Full Immersion bundle apart and makes it a worthwhile upgrade over the more affordable self-study bundle. You can compare more features in our bundles here.

Will these courses help me advance my career?

Based on hundreds of reviews from thousands of students we know how CFI courses have helped so many people advance their finance careers. Our courses are designed to be extremely practical and simulate the experience of being trained as a professional financial analyst…the ultimate way to advance your career. For real-world examples and to help delve even deeper into the course concepts, please look into our free career resources library.

Accounting for Inventory

Accounting for Inventory Course Overview

Accounting for Inventory Learning Objectives

Who Should Take This Course?

Courses we recommend you take in advance

Accounting for Inventory

What you'll learn

Introduction

FIFO & LIFO

Summary

This Course is Part of the Following Programs

Financial Modeling & Valuation Analyst (FMVA®) Certification

Accounting for Financial Analysts Specialization

What Our Members Say

Lazhar Ben Ammar Issaoui

Dr Gregory Gray Jr

Frequently Asked Questions