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All posts for the month December, 2015

p vs. α

Posted by Bill Campbell III, CFA on December 9, 2015
Posted in: Level I Quantitative Methods, Level II Quantitative Methods.

Candidates galore have problems (nightmares, really . . . but let’s not rub it in) with p-values.  I’m here to tell you that understanding p-values is easy.  Seriously: easy. A p-value is nothing more nor less than a level of significance, just like α.  The best description I’ve heard is that α is the chosen […]

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Inventory Methods: FIFO vs. LIFO vs. Average Cost vs. Specific Identification and Periodic vs. Perpetual

Posted by Bill Campbell III, CFA on December 3, 2015
Posted in: Level I Financial Reporting and Analysis, Level II Financial Reporting and Analysis.

I apologize in advance: this article’s long. Every inventory method has two important characteristics: How will costs be assigned to cost of goods sold (COGS) and ending inventory (EI)? When will those costs be assigned to COGS and EI? There are four possible answers to the first question: First-in, first-out (FIFO) Last-in, first-out (LIFO) Average […]

This article is for members only.  You can become a member now by purchasing a

CFA® Level I Membership, CFA® Level I Financial Reporting and Analysis (FRA) Membership, CFA® Level II Membership, CFA® Level II Financial Reporting and Analysis (FRA) Membership

This will give you access to this and all other articles at that membership level.