Absorption Costing

This video explains the concept of Absorption Costing in Managerial Accounting. A comprehensive example is provided to explain how absorption costing is used to calculate per unit product costs as well as to create an absorption costing income statement. The video also contrasts the absorption costing method with the variable cost method and discusses how the use of absorption costing can lead to distorted measures of profitability and perverse managerial incentives.
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Пікірлер: 222

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    @Edspira

    7 жыл бұрын

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    4 жыл бұрын

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    Жыл бұрын

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    7 ай бұрын

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    @Edspira

    8 жыл бұрын

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    7 жыл бұрын

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  • @Edspira

    @Edspira

    8 жыл бұрын

    +dorororo Congratulations! The CPA exam is a difficult test, so clearly you put in a lot of hard work and studying. I wish you all the best and hope you have an excellent career!

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    8 жыл бұрын

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    3 жыл бұрын

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    4 ай бұрын

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  • @JohnYuFitness
    @JohnYuFitness5 жыл бұрын

    This is by far one of my favorite videos from the channel. It made absorption costing more understandable. For anyone out there, this entire channel covers practically both the finance and managerial accounting courses in most MBA programs.

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    @Edspira

    2 жыл бұрын

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    4 ай бұрын

    Same here (after 2 years tho. lol)

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    @heyitschika6 жыл бұрын

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  • @Edspira

    @Edspira

    6 жыл бұрын

    No problem, congratulations on passing the course!

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    @Edspira

    6 жыл бұрын

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    5 жыл бұрын

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    @Edspira

    Жыл бұрын

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    3 жыл бұрын

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    @Edspira

    4 жыл бұрын

    Best of luck!

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    @veenarasagnya8 жыл бұрын

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    @ZiaurRahmanAdvocate

    8 жыл бұрын

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    @Rorisang-xq6dp3 ай бұрын

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  • @jeanmaxwell5149
    @jeanmaxwell51495 жыл бұрын

    Thank you for clearing up this method of costing, excellent presentation!

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    @MrShem123ist10 ай бұрын

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    @MetallicOpeth Жыл бұрын

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  • @Edspira

    @Edspira

    Жыл бұрын

    Thank you for the kind words!

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    @prashanthsk274 жыл бұрын

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    @ItsMickSay7 жыл бұрын

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  • @mamounalkhaileh7826
    @mamounalkhaileh78266 жыл бұрын

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  • @Edspira

    @Edspira

    6 жыл бұрын

    Mamoun, I'm glad you liked the video. I have more managerial accounting videos for free on my website if you need any additional instruction: edspira.com/courses/managerial-accounting Good Luck in your class!

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    @J3lazeify6 жыл бұрын

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  • @candaceseayfolks7954
    @candaceseayfolks795410 ай бұрын

    Thanks so much. This was very helpful to understand the method. I especially appreciated the last few minutes where it all came together!

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    @shivmishra42054 ай бұрын

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    @petersiep6 жыл бұрын

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    This helped me out significantly. Nice and clear compared to my actual teacher. Good work!

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    @navaskoorimannil9 жыл бұрын

    simple and precise explanation. great work. thanks

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    @tarekalsherif574 жыл бұрын

    That is really a very clear explaining, Thank you!

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    @MrBuckethead9117 жыл бұрын

    You, sir, are an absolute legend! Thank you! :)

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    @acovarrubias124 жыл бұрын

    Thank you so much Edspira!

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    @NataliaM0097 жыл бұрын

    Thank you for these videos. I am studying CPA right now and their explanations are not comparable to yours. I only start understanding things after watching your videos.

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    5 жыл бұрын

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    @2000hwhump4 жыл бұрын

    Terrific explanation, sir. Thank you!

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    @loril67735 жыл бұрын

    Thank you! I love your videos!

  • @mattyred
    @mattyred7 жыл бұрын

    Really, really good video! Thanks so much!!!!

  • @JesusLoveIsForEveryone
    @JesusLoveIsForEveryone8 күн бұрын

    Thanks for video learnings like this. ☺ God Bless 💖

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    @mrdimosssssss8 жыл бұрын

    thank you very much, these videos help so much.

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    @Convees7 жыл бұрын

    Very helpful for ACCA preparation!

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    @tajwarchowdhury223 жыл бұрын

    Thanks man. You can explain really well

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    @kawishraza34935 жыл бұрын

    Thanks man, really helped me a lot.

  • @farhanalam4413
    @farhanalam441310 ай бұрын

    Great explanation 😃

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    @yuniorgalardy27817 жыл бұрын

    Thank you very much for this video. Im studying for the CPA exam and your video has been of great help. Please keep posting more videos.

  • @Edspira

    @Edspira

    7 жыл бұрын

    No problem. I hope you pass the CPA exam on your first try and go on to have an excellent career!

  • @valeriagallo1069
    @valeriagallo10692 жыл бұрын

    you are just absolutely clear and good at explaining! keep on and thank u!

  • @Edspira

    @Edspira

    2 жыл бұрын

    You're very welcome!

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    @mbarnaamij7 жыл бұрын

    This is very helpful. Thank you

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    @kathyJF156 жыл бұрын

    best accounting professor ever!!

  • @Edspira

    @Edspira

    6 жыл бұрын

    Thanks for the confidence booster!

  • @waaafey3135
    @waaafey31354 жыл бұрын

    Thanks for the brief introduction sir, God bless you ♥️

  • @johnkang6221
    @johnkang62212 жыл бұрын

    My professor literally can't even teach. How hard is it to give us some examples like this video.

  • @gregorybai4226
    @gregorybai42266 жыл бұрын

    Thanks very much for the video...it explains more clear than our text book and our lecture as well....wish my lecture could be like this...many many thanks

  • @Edspira

    @Edspira

    6 жыл бұрын

    Thanks Gregory! I have many managerial accounting videos if you you'd like to check them out. All of them are free of charge. Best of luck to you in your studies! www.edspira.com/courses/managerial-accounting

  • @katiemclaughlin1582
    @katiemclaughlin15826 жыл бұрын

    Your videos are so effective, you've helped me out so much. Thank you!

  • @Edspira

    @Edspira

    6 жыл бұрын

    Thanks, and good luck in your studies!

  • @RaRa-Online
    @RaRa-Online7 жыл бұрын

    Thank you very much sir. This helped me a lot.

  • @patkuffour3493
    @patkuffour34935 жыл бұрын

    Thanks Professor. Your super helpful!!!!!!!!!!!!!!!!!!

  • @user-jg2xx6ib8r
    @user-jg2xx6ib8r9 жыл бұрын

    THANKS FOR YOUR CLASS . LEARN A LOT .

  • @Edspira

    @Edspira

    9 жыл бұрын

    云生活云朵快报 My pleasure, thank you!!

  • @nomoremunyanyavira7988
    @nomoremunyanyavira79887 жыл бұрын

    thanks you so much,you take me to another step

  • @nisserov
    @nisserov Жыл бұрын

    New Business Controller at my new job. They are using Absorption Costing, which my old job never did - we only just variable costing. This firm moved from variable to Abs costing five years back due to new management. I´ve only seen disadvantages with this method, and frankly was kinda hoping that you could shed some light onto it. Why are companies using it for other reasons that "well everybody else is using it for external sales"? There must be something good with it....I hope :/

  • @fayegaritta4090
    @fayegaritta40908 жыл бұрын

    Thank you so much!!

  • @sololife8854
    @sololife88545 жыл бұрын

    Thank you for the video! :)

  • @SunsetFilmsCo
    @SunsetFilmsCo9 жыл бұрын

    I really appreciate your simplicity. why aren't you my professor

  • @Sophie-jl3sj
    @Sophie-jl3sj9 жыл бұрын

    This is awesome!!!!

  • @Edspira

    @Edspira

    9 жыл бұрын

    Sophie Wang Thank you!

  • @reverbvibes932
    @reverbvibes9323 жыл бұрын

    You are the best! God bless you

  • @Edspira

    @Edspira

    3 жыл бұрын

    Thank you!

  • @eilenkatarinalunde2969
    @eilenkatarinalunde29697 жыл бұрын

    Very good, thanks

  • @Bipplov
    @Bipplov7 жыл бұрын

    Thanks a lot. Your videos are of great help to me.

  • @Edspira

    @Edspira

    7 жыл бұрын

    No problem! Best wishes :)

  • @madurameshan9342
    @madurameshan93422 жыл бұрын

    Thank you for your videos! It's really helpful and I recommend it to all my uni friends :)

  • @Edspira

    @Edspira

    2 жыл бұрын

    Thank you for the encouragement and support!

  • @amadhafez6309
    @amadhafez63098 жыл бұрын

    One Word: Excellent.

  • @Edspira

    @Edspira

    8 жыл бұрын

    Thank you sir! Best wishes

  • @lesleynakeng2100
    @lesleynakeng21009 жыл бұрын

    give that man a bell

  • @padairmacleod9371
    @padairmacleod93717 жыл бұрын

    Great video! Thanks for the help

  • @Edspira

    @Edspira

    7 жыл бұрын

    No problem my friend

  • @rehnumatarannum869
    @rehnumatarannum8696 жыл бұрын

    trust me u r god gifted. Thank u sir :)

  • @nabeelahmad5015
    @nabeelahmad50153 жыл бұрын

    Oooh perfect,now i know that why absorption costing profit increases when their is increase in production.

  • @Kevin-jk1vr
    @Kevin-jk1vr3 жыл бұрын

    Better than my uni lecturer

  • @kokilaudawatte2980
    @kokilaudawatte29804 жыл бұрын

    Really this was very helpful to me thanku sir👌🙂

  • @ayahazzam7781
    @ayahazzam77814 жыл бұрын

    amazing !

  • @cyriljohnson4489
    @cyriljohnson44895 жыл бұрын

    Excellent,

  • @taj935
    @taj9356 жыл бұрын

    It's really helpful sir Love and respect from jalalabad Afghanistan

  • @Edspira

    @Edspira

    6 жыл бұрын

    Thanks! I'm always surprised at how many different countries watch these videos. Hello to Afghanistan!

  • @puspensadhukhan3899
    @puspensadhukhan38993 жыл бұрын

    Thank u so much sir

  • @suyi1846
    @suyi1846 Жыл бұрын

    thanks, sir

  • @CristyBell
    @CristyBell6 жыл бұрын

    Thank you sooooo much.

  • @Edspira

    @Edspira

    6 жыл бұрын

    No problem. In the event you need more instruction on job order costing, I have 8 videos on this topic: edspira.com/lessons/job-order-costing Thanks for watching!

  • @thomasarop863
    @thomasarop8637 жыл бұрын

    it's great help ever

  • @nomnom6136
    @nomnom61367 жыл бұрын

    the way yu teach is amazing.... plz continue to make videos tnx..

  • @Edspira

    @Edspira

    7 жыл бұрын

    Thank you!

  • @josephdecker5660
    @josephdecker56605 жыл бұрын

    wonderful.

  • @vijjapuanilkumar5152
    @vijjapuanilkumar51522 жыл бұрын

    Great explanation sir TQ for this.. It helps alot for my preparation for cma final 👏🙏 - Anil from INDIA

  • @Edspira

    @Edspira

    2 жыл бұрын

    Good luck on the CMA!

  • @bricksInMyBp
    @bricksInMyBp3 жыл бұрын

    If I understand correctly, under Abs Costing, CGS is calculated both on Units Sold (DM+DL+MO) and Fixed MO divided by units produced? Whereas sales is only calculated on units sold. (referring to 60000/20 in Q2, as this is the only place I see the 20 units referred to when calculating CGS).

  • @elicajeles
    @elicajeles8 жыл бұрын

    Thank you for this! I'm trying to defend Absorption Costing for our debate.

  • @Edspira

    @Edspira

    8 жыл бұрын

    +Elidesa Cajeles (5sosfifthhero) Thank you and good luck with the debate!

  • @Sneha_agarwal8

    @Sneha_agarwal8

    8 жыл бұрын

    +Education Unlocked really nice for studying online...looking forward for more stuff..!

  • @willsthiek1953
    @willsthiek19535 жыл бұрын

    Thanks for enlightening on this issue, sir.

  • @Edspira

    @Edspira

    5 жыл бұрын

    No problem. Glad to help!

  • @nightthemare4742
    @nightthemare47422 жыл бұрын

    perfect same as alwayssss

  • @intrinsicallyme8404
    @intrinsicallyme84046 жыл бұрын

    I just did an essay on this and even though my predicted grades are great I'm still unable to understand what the difference between the two is. This vid is amazing.

  • @Edspira

    @Edspira

    6 жыл бұрын

    Thanks!

  • @numaniqbal2261
    @numaniqbal22612 жыл бұрын

    Thanks

  • @ntsikanyiba
    @ntsikanyiba8 жыл бұрын

    Brilliant!

  • @Edspira

    @Edspira

    8 жыл бұрын

    Thanks!

  • @ZiaurRahmanAdvocate
    @ZiaurRahmanAdvocate8 жыл бұрын

    A very good learning video...

  • @Edspira

    @Edspira

    8 жыл бұрын

    Thank you sir!

  • @user-pe4gz3mi2e
    @user-pe4gz3mi2e5 жыл бұрын

    thanks you sir

  • @vijithsoman
    @vijithsoman6 жыл бұрын

    thank you that helped!

  • @Edspira

    @Edspira

    6 жыл бұрын

    No problem. Happy studies!

  • @hellenkaala6403
    @hellenkaala64035 жыл бұрын

    thanks

  • @drallisimo34
    @drallisimo346 жыл бұрын

    great tut!!!

  • @Edspira

    @Edspira

    6 жыл бұрын

    Thanks Dan, and happy studies!

  • @Sam-yt3dq
    @Sam-yt3dq2 жыл бұрын

    Thank you

  • @Edspira

    @Edspira

    2 жыл бұрын

    Welcome!

  • @sharengonsalves4451
    @sharengonsalves4451 Жыл бұрын

    Are traditional costing systems (job order and process costing) an example of absorption costing?

  • @AnoushaSpeaks
    @AnoushaSpeaks2 жыл бұрын

    Are these videos suitable for me to watch if I study AS levels or Alevels?