Marginal vs Absorption Costing | Cost per unit | Profit / Loss | CMA | ACCA | Commerce Specialist |
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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
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Sure
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Thank you sir for gave clear knowledge about marginal and absorption cost. Thank you very much😌
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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 ..
Ur welcome dear, good luck in your studies.
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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.
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@@CommerceSpecialist do u have guideline on labour cost & how to calculate incentive bonus. Thanks
Yes
Love this explanation, it’s gonna help me so much. Can I have some help with step down apportionment and reciprocal apportionment?
Thanks dear, there is a video on all three methods of apportionment, pls check video on overheads👍
Always fulfilling
Thank you very much sir.
Please
Can you help make or post lectures on throughput accounting if it's available already
Please
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sir we always add under absorbed overheads, but u subtracting them?
Sir if opening stock is there we should add write but u are less
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
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
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Thanks a lot🙏👍
Wow 😱
So simplified. Thanks for the lecture
How can I get the lecture with Multiple Limiting factors?
Dear that is covered in Linear Programming
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?
Multiply by cost per unit
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?
Over absorption is added to profit n underabsorption is subtracted
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?
Variable selling n admin costs are not part of cost per unit.
All fixed costs are subtracted after Contribution Margin
@@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.
Sir if there are any variable selling n distribution cost and Administration cost how can we calculate them? Before contribution or after?
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)
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Sir can you please make video on total quality management and throughput costing concept
Sure
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Sir if there is opening stock how it will be claculated
Give opposite treatment as compared to closing stock
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.
Take production as capacity
Sir please make more Videos on ACCA F2 PAPER
There are many dear, just write the name of topic with Commerce Specialist
Sir if there is no capacity how we can fint fixed production overhead per unit
Ues production as capacity
I need the full resource materials if possible...how do I access them...thank you
Which materials dear
@@CommerceSpecialist .a soft copy of what you are using particularly questions and answers
We don't have to deduct income tax expenses to arrive at Net profit?
Yes if given in question
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.
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.
My question is how the over and under absorption is calculated
Under absorbed = (capacity of production - units produced) × Fixed production overhead cost
Over absorbed = (units produced - capacity of production) × Fixed production overhead cost
Watch my video on the same topic pls
If you are given only variable cost but you are not given variable cost per unit. How to determine it
Divide by production in units
Why are you considering fixed cost on marginal cost?
Thats deducted to calculate profit, but fixed cost is not included to calculate cost per unit
What causes marginal profit high as compare to absorption profit
Fixed overheads over absorbed ( true or false)
Sir kia yeh true hogi?
If selling price is high and vc is less, then marginal costing will gv high profit since fixed cost remains constant
If you have two months:
Jan. Feb.
Production. 6000. 5000
Sales. 4000. 6000.
How to calculate the closing inventory in both
(6000 - 4000) 2000 units will become opening inventory for February
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