a. distinguish between costs included in inventories and costs recognised as expenses in the period in which they are incurred;

b. describe different inventory valuation methods (cost formulas);

c. calculate and compare cost of sales, gross profit, and ending inventory using different inventory valuation methods and using perpetual and periodic inventory systems;

d. calculate and explain how inflation and deflation of inventory costs affect the financial statements and ratios of companies that use different inventory valuation methods;

b. describe different inventory valuation methods (cost formulas);

c. calculate and compare cost of sales, gross profit, and ending inventory using different inventory valuation methods and using perpetual and periodic inventory systems;

d. calculate and explain how inflation and deflation of inventory costs affect the financial statements and ratios of companies that use different inventory valuation methods;

e. explain LIFO reserve and LIFO liquidation and their effects on financial statements and ratios;

f. convert a company's reported financial statements from LIFO to FIFO for purposes of comparison;

g. describe the measurement of inventory at the lower of cost and net realisable value;

h. describe implications of valuing inventory at net realisable value for financial statements and ratios;

i. describe the financial statement presentation of and disclosures relating to inventories;

j. explain issues that analysts should consider when examining a company's inventory disclosures and other sources of information;

k. calculate and compare ratios of companies, including companies that use different inventory methods;

l. analyze and compare the financial statements of companies, including companies that use different inventory methods.