Marginal vs Absorption Costing | Cost per unit | Profit / Loss | CMA | ACCA | Commerce Specialist |

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  • čas přidán 25. 07. 2024
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    This video from Commerce Specialist explains What Is Marginal Costing, What is Absorption Costing, Difference between Marginal & Absorption Costing, Marginal v/s Absorption Costing, Cost per unit, Statement of Profit/Loss under Marginal Costing and Absorption Costing. Reconciliation of Profit/Loss. When Marginal Costing is used, When Absorption Costing is used etc.,
    This tutorial/lecture video is very relevant and useful for students of, A Levels, BBA, MBA, CA, ACCA, ACCA F2, ACCA F5, CMA & CIMA.
    About:
    Commerce Specialist is a Certified Management Accountant (CMA) from USA, is a Fellow of member of HEA UK, holds Certification in International Auditing from ACCA-UK, member of IFA UK and IPA Australia, also holds a Bachelors in Accounting, A teaching qualification of B.Ed., an MBA in Finance along with over 20 years’ experience of working in various MNCs in different sectors including Banking, NBFIs, Retail, Oil & Gas, Telecommunication, and top business schools, colleges and universities.
    website link: www.comparativeedge.com
    Viewers and students can contact me on info@comparativeedge.com or email me at studyonline8888@gmail.com or whatsapp me on +923219213800.
    #marginalvsabsorptioncosting #costing #absorptionvsmarginalcosting

Komentáře • 180

  • @lydiaeric742
    @lydiaeric742 Před rokem +20

    I don't know why you make it look soooooo easy, its either you are gifted or highly gifted, maybe both of them☺. You are a life saver and God bless you.

  • @josephmanu5664
    @josephmanu5664 Před 2 lety +11

    Truly, your explanation is attached to the real world situation by converting theory to practicality...GOD BLESS U.

  • @tintamichelo910
    @tintamichelo910 Před 6 měsíci +4

    First explanation I've understood in 3 months of lessons 😅❤. Thank you sir

  • @Amrat03
    @Amrat03 Před 11 měsíci +4

    Best explanation of AC & MC in least time. I could surely say this is the best video of the topic on youtube. Even my paid coaching teachers aren't able to explain in this seamless & easy manner.

  • @euniceike1165
    @euniceike1165 Před rokem +5

    I love the way you make your teaching seamless, understandable and well presented.May the almighty God grant you good health to continue to serve us

  • @jaydaka7886
    @jaydaka7886 Před 2 lety +7

    Where have you been whole my life? I have understood this lecture very well thank you very much. Oh plus you've gained a new subscriber ❤

  • @rakeshsha5164
    @rakeshsha5164 Před 3 dny

    I am trying to understand this topic from 3 hour but i couldn't but after seeing your video i become able to solve all problems related to this topic. Thanks sir . Please make more videos related to ACCA.

  • @yohasethio7669
    @yohasethio7669 Před 2 lety +7

    Thank you for the lecture. You made the topic interesting and easy to understand.

  • @s.chambers4256
    @s.chambers4256 Před rokem

    Finally got it . Your explanation was very clear.

  • @khyal16
    @khyal16 Před 2 lety +1

    Well explained Sir. Really helpful

  • @PASSIBOI
    @PASSIBOI Před 4 měsíci +1

    Sir, you made my day with this fabulous session, intrestingly may you are only who have covered this topic

  • @alfadecosta5767
    @alfadecosta5767 Před rokem +2

    Well explained am taking CPA

  • @relaxyourself8706
    @relaxyourself8706 Před rokem

    Very informative video clearly explained 👏

  • @adepuvasundhara0828
    @adepuvasundhara0828 Před 2 lety +1

    Excellent explanation sir

  • @rafique877
    @rafique877 Před 2 lety +1

    Well explained sir 💐

  • @user-rp3mt7ri5w
    @user-rp3mt7ri5w Před 5 měsíci +1

    I owe you a BIG thanks ..I totally understand this AC MC thanks to you! 🙏🏻

    • @user-rp3mt7ri5w
      @user-rp3mt7ri5w Před 5 měsíci

      Adding the comment ... I keep your video 'handy' during my exam prep! And it getting easier each time I watched your video! :)

  • @smritybhusal4491
    @smritybhusal4491 Před rokem

    You explained it so well💜thank you sir❤

  • @oldsoul_49
    @oldsoul_49 Před rokem +1

    Great job 👍

  • @chandajere9586
    @chandajere9586 Před 9 měsíci

    Thank you so much,Well explained

  • @hiralgohel5108
    @hiralgohel5108 Před 3 dny

    Mind blowing explanation sir 😇✨👍

  • @margaretnauluta4084
    @margaretnauluta4084 Před 2 lety

    Well explained....

  • @giftyabena1685
    @giftyabena1685 Před 3 měsíci

    Anytime I come to CZcams to watch videos on financial reporting or cost and management, it's always the commerce specialist because he is good and can explain things to my satisfaction. His teachings have helped me a lot ❤. God bless u

  • @ArsalaAbid-jp9ty
    @ArsalaAbid-jp9ty Před 3 měsíci

    I can't believe how well he explained each and every single step. I saw alot of lectures on this topic on CZcams but this video lecture can't be compared woth other i would rate it 11 out of 10 . ❤

  • @BoldwinJavero
    @BoldwinJavero Před 13 dny

    THIS IS GREAT🙏🙏

  • @kearabetsoepakela6544
    @kearabetsoepakela6544 Před 7 měsíci

    Your explantion made a huge diffrence in my performamce....thank you so much

  • @ibrahimomar4118
    @ibrahimomar4118 Před 8 měsíci

    Thank you teacher what a best explain to make

  • @maghfira5175
    @maghfira5175 Před 2 měsíci +1

    You made it so easy I had marginal profit in my ma2 exam I didn't know how to solve it after so many practice it was because my concepts were not clear. I passed the exam anyways but want to improve my mistakes and You've helped me alot Thank you sir
    Love and support from pakistan 🇵🇰

  • @gosiaq87
    @gosiaq87 Před 3 měsíci +1

    GREAT ! You saved my live ! thanks

  • @varunupadhyay8150
    @varunupadhyay8150 Před rokem

    Sir your explanation is truly good I already join cma classes, but I have to see your lects

  • @luciamasunda9830
    @luciamasunda9830 Před 2 lety

    woow, clearly explained. thank you

  • @ilkinmusayev2906
    @ilkinmusayev2906 Před rokem

    Great lecture, lots of thanks!

  • @motivationfordayz
    @motivationfordayz Před 6 měsíci

    Just wow thank you so much for breaking down this topic

  • @preciousphuluso1186
    @preciousphuluso1186 Před 3 měsíci +1

    Thank you so much 🙏

  • @Lalaundercover389
    @Lalaundercover389 Před rokem

    Perfect!!!

  • @MaboshabaneLegodi
    @MaboshabaneLegodi Před 9 měsíci

    I love you all the way from South Africa

  • @AhmedSaad-wq3be
    @AhmedSaad-wq3be Před rokem

    Really. Very helpful. Thanks a lot.

  • @rahemamuhammad9944
    @rahemamuhammad9944 Před 9 měsíci

    Well explained, thank you sir

  • @Naveenkumar-qy5wy
    @Naveenkumar-qy5wy Před rokem

    I pray for your health and good life , you solved all my query regarding this topic.
    Thank you for your lecture.

  • @sheemarajanpillai5466

    wow! the best explanation ever 🙏

  • @lucrishadavids3900
    @lucrishadavids3900 Před měsícem +2

    Very well explained am doing ACCA and this topic is difficult for me to understand but you're explanation is clear please send more details on this topic

  • @krrhyssss945
    @krrhyssss945 Před rokem

    You gained a new subscriber ,very amazing teaching.💐

  • @maryamnoor755
    @maryamnoor755 Před 11 měsíci

    Thank you so much Sir! You've explained it so well 😍

  • @smithkaupa2299
    @smithkaupa2299 Před rokem

    Sir your explanations are perfect.

  • @-KUSHMAV
    @-KUSHMAV Před 3 měsíci +1

    Thank you sir for gave clear knowledge about marginal and absorption cost. Thank you very much😌

  • @JihaanAbdiweli
    @JihaanAbdiweli Před 11 měsíci +1

    Thank you soo much sir. Your explanation is truly genuine, OMG god bless you ya ♥🎇💎

  • @mandlalubisi6626
    @mandlalubisi6626 Před 2 měsíci

    Thanks sir.
    I am not an accounting person but currently studying Management accounting and what you shared here shed some light.

  • @alimadari2275
    @alimadari2275 Před 7 měsíci

    What a great video 🫡🫡

  • @josephnzunguli8491
    @josephnzunguli8491 Před 8 měsíci

    Thankyou very much (easy explanation, easy understanding) GOD BLESS

  • @RICKYBAJWA1
    @RICKYBAJWA1 Před 6 měsíci

    very well explained sir, I am a BPP student but the way you explained this they could not. Thanks

  • @rajkumartamang7795
    @rajkumartamang7795 Před rokem

    Very simple way to teaching..

  • @abdulrahmanmahar7491
    @abdulrahmanmahar7491 Před 2 lety +1

    Good explanation..

  • @mwildoit
    @mwildoit Před 4 měsíci

    thank u sir.

  • @hassanansari5515
    @hassanansari5515 Před 2 měsíci

    Very brilliantly explained Sir love from Pakistan

  • @imranahmedmirza7045
    @imranahmedmirza7045 Před rokem +1

    How are you sir, your teaching style is very impressive. I remembered you teached me in MBA program at PIMSAT in year 2009......

  • @laminsusso7053
    @laminsusso7053 Před 5 měsíci

    you are my best online lecturer so far and GOD be with you the only problem i have is process account, i would love to watch your lecture under process account

    • @CommerceSpecialist
      @CommerceSpecialist  Před 5 měsíci

      There are two videos on process account already on my channel dear

  • @kapendatuhafeni9010
    @kapendatuhafeni9010 Před rokem +1

    You truly brilliant sir❤❤

  • @koolraul27
    @koolraul27 Před 11 měsíci +1

    Very well explained

  • @mohamed_Riham
    @mohamed_Riham Před 5 měsíci

    I'm from ca sri lanka sir..it was really helpful for my costing part..I have learnt many subtleties from this lesson..pls upload continuoesly regarding costing topics sir..❤Thank you so so much ..

  • @user-mf1kq9jk8s
    @user-mf1kq9jk8s Před 6 měsíci

    I can't believe it so so easy thank you very much sir for the teaching may God continue to bless you and give you more strength for your grate job ❤❤❤❤

  • @uzairarif9310
    @uzairarif9310 Před rokem

    very well explained ❤

  • @Muthu081982
    @Muthu081982 Před rokem

    Thanks sir

  • @derickmwaba4474
    @derickmwaba4474 Před rokem

    Best lecturer ever

  • @yawobnissar1139
    @yawobnissar1139 Před 7 měsíci

    Thank you sir you have really helped me but i have a question what do you do if you have two fixed production overheads in the question.

  • @omarysaid7100
    @omarysaid7100 Před 2 lety

    Good explanation sir

  • @safianufati7641
    @safianufati7641 Před rokem

    You are the best

  • @HDKaush
    @HDKaush Před 6 měsíci

    Thank You Sir ❤

  • @shalinicalingen9875
    @shalinicalingen9875 Před 2 lety

    Great explanation... Thanks u very much..

  • @kianatappin2504
    @kianatappin2504 Před rokem +1

    Love this explanation, it’s gonna help me so much. Can I have some help with step down apportionment and reciprocal apportionment?

    • @CommerceSpecialist
      @CommerceSpecialist  Před rokem

      Thanks dear, there is a video on all three methods of apportionment, pls check video on overheads👍

  • @ogarpatrick2228
    @ogarpatrick2228 Před 9 měsíci

    Always fulfilling
    Thank you very much sir.
    Please
    Can you help make or post lectures on throughput accounting if it's available already
    Please
    Thank you sir.

  • @dhrutigandhi6300
    @dhrutigandhi6300 Před 9 měsíci

    It's a great resource for ACCA F5 students and your explanations with examples are quite easy to understand. Sir can you create a playlist for F5. Thank you sir for such amazing explanations.

  • @s.m.taufiqueilahi4869
    @s.m.taufiqueilahi4869 Před 2 lety

    Superb

  • @jessekuatsinu894
    @jessekuatsinu894 Před 2 měsíci +1

    You're awesome

  • @Sarikakachannel
    @Sarikakachannel Před rokem

    amazingggggg 👏🏻👏🏻👏🏻👏🏻👏🏻

  • @shozabali7287
    @shozabali7287 Před rokem

    sir we always add under absorbed overheads, but u subtracting them?

  • @ajithkumarrj8545
    @ajithkumarrj8545 Před rokem

    Sir if opening stock is there we should add write but u are less

  • @saadi5484
    @saadi5484 Před rokem

    Sir agar hamare pass opening stock mai kuch balance hai mean 1000 is opn /stk so usko total per unit se multiply karengay start mai
    Marginal & absorption costing mai both ... Plssss

  • @theophiluslightlarbie6557

    Good explanation sir ❤
    One question please
    If the production units are given for only one month or 1 quarter ,how is the over /under absorption calculated, when the activity units is on annual basis
    Also if an opening balance is given,does that mean we add the amount to the production cost before calculating the closing stock?
    Will be happy for a reply sir

  • @bratzyicy
    @bratzyicy Před 5 měsíci

    god bless you

  • @prince-uba
    @prince-uba Před rokem +1

    Wow 😱
    So simplified. Thanks for the lecture
    How can I get the lecture with Multiple Limiting factors?

  • @younghendrix7175
    @younghendrix7175 Před rokem

    Hello sir in situations we're opening stock is given in units what do you do about it so you multiply it with the selling price or something else?

  • @kasunianjalika4236
    @kasunianjalika4236 Před rokem +1

    Sir i have a question. If there any under absorbtion should we adding to the gross profit. Over absorbtion should less from the profit i think. Can you explain it?

    • @CommerceSpecialist
      @CommerceSpecialist  Před rokem

      Over absorption is added to profit n underabsorption is subtracted

  • @xolisagongota4456
    @xolisagongota4456 Před 8 měsíci

    Good day Sir, should I have a veriable selling and administration cost do I add the units of veriable selling and administration to calcute for production cost?
    &
    Should I have fixed selling and administration do I also add it in the income statement under less fixed cost?

    • @CommerceSpecialist
      @CommerceSpecialist  Před 8 měsíci +1

      Variable selling n admin costs are not part of cost per unit.
      All fixed costs are subtracted after Contribution Margin

    • @xolisagongota4456
      @xolisagongota4456 Před 8 měsíci

      @@CommerceSpecialist Thank you Sir, though the practical paper is still difficult for me to comprehend and soon I am writing is there no way I can contact you whether through email or phone so you can assist me please? I've been stuck on this. I will send you an attachment.

  • @kasunianjalika4236
    @kasunianjalika4236 Před rokem

    Sir if there are any variable selling n distribution cost and Administration cost how can we calculate them? Before contribution or after?

    • @learnandearnfinance
      @learnandearnfinance Před 10 měsíci

      Selling and administration cost has nothing to do with marginal or absorption cost. These both method only differentiate in Production Over head cost (Fixed Production Over head cost and Variable Production Over head cost)

  • @cmaelaiyapallavan
    @cmaelaiyapallavan Před 8 měsíci +1

    I love you

  • @gurjotkaur1999
    @gurjotkaur1999 Před 4 měsíci

    Sir can you please make video on total quality management and throughput costing concept

  • @paawanijain5464
    @paawanijain5464 Před rokem +1

    👍👍👍

  • @vyshnavsurendran9183
    @vyshnavsurendran9183 Před rokem +1

    Sir if there is opening stock how it will be claculated

  • @user-wh5kn7ww2u
    @user-wh5kn7ww2u Před 4 měsíci

    Hi! I don't have in my exercise capacity production, i have only production which is 45,000. how can i calculate if is under or over absorbed? Thanks.

  • @madelights3344
    @madelights3344 Před rokem

    Sir please make more Videos on ACCA F2 PAPER

    • @CommerceSpecialist
      @CommerceSpecialist  Před rokem

      There are many dear, just write the name of topic with Commerce Specialist

  • @Waytoislam07
    @Waytoislam07 Před 4 měsíci

    Sir if there is no capacity how we can fint fixed production overhead per unit

  • @user-mu2uu6nl4v
    @user-mu2uu6nl4v Před 10 měsíci

    I need the full resource materials if possible...how do I access them...thank you

    • @CommerceSpecialist
      @CommerceSpecialist  Před 10 měsíci

      Which materials dear

    • @user-mu2uu6nl4v
      @user-mu2uu6nl4v Před 10 měsíci

      @@CommerceSpecialist .a soft copy of what you are using particularly questions and answers

  • @ahmadalif2609
    @ahmadalif2609 Před 2 lety

    We don't have to deduct income tax expenses to arrive at Net profit?

  • @Nethrapapa
    @Nethrapapa Před 9 měsíci

    Sir, how to calculate Sales in my situation , Because we sell windows For Example Sales person 1 - Selling 1 window in 300 riyal and Sales person 2 selling in 380 riyal it depends up the closing the deals with client how to determine this, we are selling in “n” value please help me sir.

  • @BoldwinJavero
    @BoldwinJavero Před 13 dny

    WHAT WILL BE THE OPENING STOCK AND CLOSING STOCK FOR THE QUESTION BELOW? PLEASE HELP
    Lubasi Ltd makes and sells product A. Below is the cost card for each unit of product A.
    K
    Direct materials
    24.00
    Direct labour
    15.00
    Variable production overhead
    6.00
    Fixed production overhead
    15.00
    Total cost
    60.00
    Profit
    45.00
    Selling price
    105.00
    The fixed production overhead figure has been calculated on the basis of a budgeted normal output of 24,000 units per annum. Fixed sales and administration costs are estimated at K72,000 per annum. You may assume that all budgeted fixed expenses are incurred evenly over the year.
    The sales price is K105.00 and the actual number of units produced and sold was as follows:
    January
    February March
    Production units
    2,000
    2,500. 2,200
    Sales units
    2,500
    2,500. 2,000
    Required:
    (a) Prepare a profit statement for each of the months
    January, February and March using absorption costing.

  • @saiduwurie
    @saiduwurie Před 4 měsíci +1

    My question is how the over and under absorption is calculated

    • @gurjotkaur1999
      @gurjotkaur1999 Před 4 měsíci

      Under absorbed = (capacity of production - units produced) × Fixed production overhead cost
      Over absorbed = (units produced - capacity of production) × Fixed production overhead cost

    • @CommerceSpecialist
      @CommerceSpecialist  Před 4 měsíci

      Watch my video on the same topic pls

  • @hassansesay2604
    @hassansesay2604 Před 4 měsíci

    If you are given only variable cost but you are not given variable cost per unit. How to determine it

  • @mograhmaluwaya8863
    @mograhmaluwaya8863 Před rokem

    Why are you considering fixed cost on marginal cost?

    • @CommerceSpecialist
      @CommerceSpecialist  Před rokem

      Thats deducted to calculate profit, but fixed cost is not included to calculate cost per unit

  • @rahenoor2239
    @rahenoor2239 Před 11 měsíci

    What causes marginal profit high as compare to absorption profit
    Fixed overheads over absorbed ( true or false)
    Sir kia yeh true hogi?

    • @CommerceSpecialist
      @CommerceSpecialist  Před 11 měsíci

      If selling price is high and vc is less, then marginal costing will gv high profit since fixed cost remains constant

  • @user-km8zk7du8z
    @user-km8zk7du8z Před 6 měsíci

    If you have two months:
    Jan. Feb.
    Production. 6000. 5000
    Sales. 4000. 6000.
    How to calculate the closing inventory in both

  • @natimelese3860
    @natimelese3860 Před 3 měsíci +1

    so smart but poor handwriting please keep it up but improve your handwriting.