Description
In Financial Management: Inventory Costing and Depreciation, participants will learn how to calculate inventory value and depreciation. Participants will learn why organizations use accounting methods when reporting financial information on financial statements.
Audience
Managers and employees who want to learn how to calculate inventory value and depreciation.
Prerequisites
(Currently no course prerequisite information)
Objective
- Choose which assets of an organization are most appropriate to depreciate.
- Choose the appropriate method for depreciating an asset.
- Calculate inventory value using specific identification, weighted average, FIFO, and LIFO costing methods.
- Calculate depreciation using straightline, activitybased, sumoftheyears'digits, and decliningbalance.
Topics Include
Unit 1: Background Information - Explain why organizations use accounting methods when reporting financial information on financial statements.
- Name the two largest types of assets affected by accounting methods.
- Define 'inventory' and 'depreciation'.
- Simulation Overview:
- In this simulation, you will meet with Maggie Roberts, one of Icon's Assistant Controllers, to discuss the functions of a balance sheet and the different ways of reporting the value of assets. Through your questions, you will identify what inventory and depreciation are, the methods for valuing inventory, and the various types of depreciation methods an organization can use.
Unit 2: Inventory Costing Methods - Explain why an organization should be concerned with how it values its inventory.
- Use specific identification, average costing, FIFO, and LIFO costing methods.
- List the advantages of each of the four inventory costing methods.
- Simulation Overview:
- In this simulation, you will meet with Elizabeth Thomas, an Assistant Controller for the Consumer Products Division of Icon. She will be giving you a series of exercises to identify your knowledge of inventory valuation methods. Through her questions and your answers, you will learn when each of the four inventory valuation methods should be used and how to choose the right method for your company.
Unit 3: Depreciation Methods - Choose which assets of an organization are most appropriate to depreciate.
- Name the three factors involved in the depreciation process.
- Choose the appropriate method for depreciating an asset, given the four most common depreciation. methods
- Simulation Overview:
- In this simulation, you will meet with Bruce Madison, an Assistant Controller for the Consumer Products Division of Icon. He will lead you through a series of questions to test your knowledge of the various depreciation methods and in which situations they can be applied.
Unit 4: Application of Accounting Methods - Calculate inventory value using specific identification, weighted-average, FIFO, and LIFO costing methods.
- Calculate depreciation using straight-line, activity-based, sum-of-the-years'-digits, and declining-balance.
- Simulation Overview:
- In this simulation, you will meet with Marcus Robinson, the Accounting Manager for Icon's Consumer Products Division in Chicago. Marcus will take you through a series of questions designed to test your skills in applying the various inventory and depreciation methods commonly used to account for assets.
Duration
4
Minimum Requirements
The CDROM version of this course requires:
- At least a 486DX 33Mhz CPU.
- Microsoft Windows 3.1 or higher and a Microsoft compatible mouse.
- At least 8MB RAM.
- At least VGA graphics capability with a minimum 512K video RAM (1MB video RAM recommended).
- At least a double speed CDROM drive.
- An MPC compliant sound card with attached speakers or headphones is recommended (Currently, only the CDROM version supports audio).
The network version of this course requires:
- At least a 486DX 33Mhz CPU.
- Microsoft Windows 3.1 or higher and a Microsoft compatible mouse.
- At least 8MB RAM and 22MB available hard disk space or file server space.
- At least VGA graphics capability with a minimum 512K video RAM (1MB video RAM recommended).
Media
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