Скачать или смотреть Types of Inventory & COGS Explained Like You’ve Never Seen Before | CFA L1 | Amquest Education

Understanding Types of Inventory and the Cost of Goods Sold (COGS) formula is essential in Financial Statement Analysis (FSA), valuation, equity research and corporate finance.
In this lecture from Amquest Education’s CFA Level I – Financial Statement Analysis (FSA) series, we break down how inventory moves through the production cycle, how COGS is computed and why the Matching Principle is a core part of accrual accounting.

This session simplifies the logic behind raw materials, work-in-progress, finished goods and how unsold inventory impacts reported profitability. You’ll also understand why financial statements present purchases and change in inventory instead of the traditional textbook formula.

What You’ll Learn in This Lecture

• Types of Inventory: Raw Materials, Work-in-Progress (WIP), Finished Goods
• Why inventory is shown at cost and not at selling price
• The official COGS formula used in financial statements
• Meaning of Purchases + Change in Inventory
• Why opening stock is added and closing stock is deducted
• Understanding “change in stock” (opening – closing)
• How COGS reflects only the cost of goods sold
• The logic and application of the Matching Principle
• Why unsold goods cannot be expensed in the current year
• How inventory flows impact profitability and valuation

This lecture helps CFA candidates understand the mechanics behind COGS and prepares them for inventory-based questions in the FSA section of the exam.

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