Inventory Accounting & Costing: 5-Day Intensive Training

Course Description

This comprehensive 5-day course provides in-depth knowledge of inventory accounting principles and costing methodologies. Participants will learn various inventory valuation techniques, cost flow assumptions, and their impact on financial statements. The course covers practical applications of inventory management strategies to optimize financial performance and decision-making.

Learning Objectives

• Understand and apply different inventory valuation methods
• Analyze the impact of inventory accounting on financial statements
• Implement effective inventory costing techniques
• Develop strategies for inventory optimization and cost control
• Interpret inventory-related financial data for decision-making
• Comply with relevant accounting standards for inventory reporting

Course Modules

Day 1: Fundamentals of Inventory Accounting

• Introduction to inventory management and its importance
• Types of inventory and their characteristics
• Inventory accounting principles and concepts
• Inventory's role in financial reporting

Day 2: Inventory Valuation Methods

• First-In, First-Out (FIFO) method
• Last-In, First-Out (LIFO) method
• Weighted Average Cost method
• Specific Identification method
• Comparison of valuation methods and their financial impact

Day 3: Cost Flow Assumptions and Calculations

• Determining the cost of purchases and production
• Incorporating overhead costs in inventory valuation
• Lower of Cost or Net Realizable Value (LCNRV) concept
• Inventory obsolescence and impairment considerations
• Recording inventory costs and valuation adjustments

Day 4: Inventory Financial Analysis

• Inventory-related financial ratios and metrics
• Analyzing inventory turnover and days' sales in inventory
• Impact of inventory on balance sheet and income statement
• Cost of goods sold and gross profit margin analysis
• Identifying and managing inventory-related risks

Day 5: Inventory Management Strategies

• Economic Order Quantity (EOQ) model
• Just-in-Time (JIT) inventory management
• ABC analysis for inventory categorization
• Strategies for reducing excess and obsolete inventory
• Technology applications in inventory management

Practical Wins for Participants

• Ability to choose and implement the most suitable inventory valuation method for their organization
• Skills to accurately calculate and record inventory costs, improving financial reporting accuracy
• Techniques to optimize inventory levels, reducing carrying costs while maintaining adequate stock
• Capacity to analyze inventory-related financial data to support strategic decision-making