Lesson ProgressPhase 5 of 6
Phase 5Assessment
Assessment: Build the Inventory Method Workbook
Technical check plus a brief artifact task: defend your method recommendation
Phase 5: Audit and Explain
Technical Check and Method Defense
Show that you understand both the tool mechanics and the business reasoning behind your method choice. Answer the technical questions below, then write a short recommendation memo.
Technical Mastery Check
Select the best answer for each question. These test your understanding of workbook design, not just the math.
1. Which formula pattern best models FIFO lot consumption in a running helper column?
2. How do you convert the FIFO helper logic into LIFO logic most reliably?
3. What makes Specific ID different from FIFO/LIFO in Excel implementation?
4. For periodic weighted average, which WA rate formula is correct?
5. What should always be true for each method row (FIFO, LIFO, Specific ID, WA)?
0 of 5 questions answered
Artifact Task: Method Recommendation Memo
Write a short memo (3-5 sentences) that answers:
- Which method (FIFO, LIFO, Specific ID, or Weighted Average) do you recommend for Sarah's business right now?
- What evidence from your workbook supports this choice? Cite specific COGS and Ending Inventory numbers.
- What is one risk or limitation of your recommendation?
Example structure: "We recommend [method] because [evidence from workbook]. This produces COGS of $[X] and Ending Inventory of $[Y], which [business impact]. One risk is [limitation], which we would monitor by [action]."
Quality Standard: Investor-Ready
Your recommendation is investor-ready when:
- The method choice is stated clearly in the first sentence
- At least two specific numbers from the workbook are cited as evidence
- One risk or limitation is acknowledged
- The memo is 3-5 sentences (not a paragraph dump)