After roughly four hours of the book, professor's lecture recording and notes, mcgraw hill's explanation, and crying not helping me understand this I finally get it. Thank you so much.
I HAVE MIDTERMS EXAM ABOUT THIS TOMORROW. I DID NOT UNDERSTOOD A THING WHEN MY PROFESSOR TAUGHT US THIS BUT YOU MADE IT SO EASY! THANK YOU VERY MUCH FOR THIS VIDEO!
I guess im asking the wrong place but does anyone know of a trick to log back into an Instagram account..? I was stupid lost the login password. I love any assistance you can offer me
@Milan Ahmad Thanks for your reply. I found the site on google and I'm in the hacking process atm. Seems to take a while so I will get back to you later when my account password hopefully is recovered.
For those who are using excel and want a formula that uses 1 cell: adjusted S1= ([S1 value] + [S2 value]*[% of S2 allocated to S1])/1-[% of S2 allocated to S1]*[% of S1 allocated to S2] adjusted S2 = ([S2 value] + [S1 value]*[% of S1 allocated to S2] )/1-[% of S2 allocated to S1]*[% of S1 allocated to S2] Notice the percentages that divide on the bottom don't change, but the percentages and values on the other parts use the "reciprocal" of each other i.e they flip. Best of luck cost accounting students :)
I would like to thank you for your great and awesome videos. I have a question You said the total cost of running both HR and Admin dept is ( $ 30,000, 40,000 ) respectively, but after calculating the cost rendered to each of service dept by each other, the total cost of both HR and Admin dept will be 48421+42105 = 90,526 Can you explain why it is higher than the real cost incurred ?
The last row of hours for HR and Admin represent costs between the two Support Departments and are not allocated to the product departments directly, using this method. They essentially cancel each other out. If you remove those costs from your total of 90526 (90526-8421-12105), it will give you the costs that are allocated --> 70 000
Geoffrey Cosentino Somewhere I am still not convinced don't you think that it is (70000+12105-8421) = 73684 to be allocated to production departments as 8421 gets knocked off from 12105 and the balance adds to the unabsorbed cost i.e 3684 (12105 - 8421)
An easier way to look at it is to set up a Table, Remember its looking at how the costs are allocated across the different departments, by adjusting the costs from 30000 & 40000 to 42105 & 48421 respectively we already took into consideration the allocation between support departments therefore the only departments to look at again is Production Mountaineering Kayaking Costs allocated by HR (12/20)*42105 = 25263 (4/20)*42105 = 8421 Costs Allocated by Admin (15/40)*48421 = 18158 (15/40)*48421 - 18158 TOTAL 43,421 26579 =70,000 Hope this helps
I'm so confused. What was the point of the equations if we again allocated costs back to the support departments? The way I understand it, the goal was to somehow allocate $70,000 of the support costs to the operating departments. I don't see how that was done. :(
That would be the Direct Method. As the presenter said, (paraphrase) this method is for allocating to not only the operating divisions, but to reciprocate between the support departments - because they utilize each other's time & services too. I had to watch it a few times plus the othe video on the long version (a couple times).
An easier way to look at it is to set up a Table, Remember its looking at how the costs are allocated across the different departments, by adjusting the costs from 30000 & 40000 to 42105 & 48421 respectively we already took into consideration the allocation between support departments therefore the only departments to look at again is Production Mountaineering Kayaking Costs allocated by HR (12/20)*42105 = 25263 (4/20)*42105 = 8421 Costs Allocated by Admin (15/40)*48421 = 18158 (15/40)*48421 - 18158 TOTAL 43,421 26579 =70,000 Hope this helps
not the most timely reply but, it is due to the allocation from the other support group and vice versa happening simultaneously in the solution, I.E. if you look at the set up there are cost hours going from HR to the Admin and back from Admin to HR, These "increase" the total allocation.
An easier way to look at it is to set up a Table, Remember its looking at how the costs are allocated across the different departments, by adjusting the costs from 30000 & 40000 to 42105 & 48421 respectively we already took into consideration the allocation between support departments therefore the only departments to look at again is Production Mountaineering Kayaking Costs allocated by HR (12/20)*42105 = 25263 (4/20)*42105 = 8421 Costs Allocated by Admin (15/40)*48421 = 18158 (15/40)*48421 - 18158 TOTAL 43,421 26579 =70,000 Hope this helps
@@cmcmmcmc how would this increase the total costs of $70,000 ? You’re literally taking the 70K total support department costs and allocating to each support department appropriately. Makes no sense that there would be an additional 20,000 in costs incurred just because you allocated the total original costs. If you take some of the HR cost and allocate it to admin then, it doesn’t mean you’re increasing costs. You’re simply taking away from one support department and adding it to the other. Can you please explain?
Your Formula is not correct. It does not allocate the costs allocated to A (by H) back to H. This formula does not fit the reciprocal method you explained in your last video, this formula does less steps. I know math is hard... a doctor explained this to me, Thanks Doctor
You are seriously my hero. Paying thousands for classes and textbooks and this is still the best resource I have over and over again.
thank you. You are great at explaining, unlike soooo many instructors... you saved my midterm
After roughly four hours of the book, professor's lecture recording and notes, mcgraw hill's explanation, and crying not helping me understand this I finally get it. Thank you so much.
THIS IS EXACTLY WHAT I NEEDED. Thank you for this and the previous video!! I can't tell you what a relief it was to finally understand this.
Glad it helped!
Thank You! I was struggling with my homework and this explanation made it so easy ....
Great! I'm happy to have helped.
2 days before my exam HAHA, finally understand!! Thanks A LOT
Glad it helped!
He deserve all our tuition payments, he is the GOAT.
Studying CIMA and none of my materials explained the equations better than you. Thank you so much.
I HAVE MIDTERMS EXAM ABOUT THIS TOMORROW. I DID NOT UNDERSTOOD A THING WHEN MY PROFESSOR TAUGHT US THIS BUT YOU MADE IT SO EASY! THANK YOU VERY MUCH FOR THIS VIDEO!
I typically don’t like math, but I love this :)
Amazing, so helpful in completing an assignment, much better then the book explanation and books useless equation breakdown.
Thanks!
this genuinely saved my life
This video helped me out so much! Thank you!
This guy is a beast, grade saving
Many thanks for your efforts. you made it unbelievably easy
Just what I was looking for! Thank you so much for the clear teachings. Love the color codes and simple to follow and understand!
I guess im asking the wrong place but does anyone know of a trick to log back into an Instagram account..?
I was stupid lost the login password. I love any assistance you can offer me
@Isaias Joe Instablaster =)
@Milan Ahmad Thanks for your reply. I found the site on google and I'm in the hacking process atm.
Seems to take a while so I will get back to you later when my account password hopefully is recovered.
@Milan Ahmad It did the trick and I finally got access to my account again. Im so happy!
Thank you so much, you saved my account :D
@Isaias Joe you are welcome =)
Thank you!! Clear and easy to understand!
Great video man! Very well explained!!
Glad it helped!
Fantastic video. Explained fully and clearly. Thanks for sharing
very good explanation. Thank you for the help.
Just awesome explanation. Thanks for sharing🤩
thank you so much! you make it so easy!!
Great explanation. Thanks chief
I'm glad you found it useful. Best of luck to you!
Great videos and a great channel! Thank you.
thank you so much. you're wonderful
Thank you so much! :) Amazing explanation!
Thanks for the video. Very helpful.
For those who are using excel and want a formula that uses 1 cell:
adjusted S1= ([S1 value] + [S2 value]*[% of S2 allocated to S1])/1-[% of S2 allocated to S1]*[% of S1 allocated to S2]
adjusted S2 = ([S2 value] + [S1 value]*[% of S1 allocated to S2] )/1-[% of S2 allocated to S1]*[% of S1 allocated to S2]
Notice the percentages that divide on the bottom don't change, but the percentages and values on the other parts use the "reciprocal" of each other i.e they flip.
Best of luck cost accounting students :)
I owe you my life
Excellent videos, thank you :)
Your video do help me to understand. Thanks
Much appreciated!
thanks for your clear explanation
No problem!
I would like to thank you for your great and awesome videos. I have a question
You said the total cost of running both HR and Admin dept is ( $ 30,000, 40,000 ) respectively, but after calculating the cost rendered to each of service dept by each other, the total cost of both HR and Admin dept will be 48421+42105 = 90,526
Can you explain why it is higher than the real cost incurred ?
The last row of hours for HR and Admin represent costs between the two Support Departments and are not allocated to the product departments directly, using this method. They essentially cancel each other out. If you remove those costs from your total of 90526 (90526-8421-12105), it will give you the costs that are allocated --> 70 000
Geoffrey Cosentino thank u. Got it
Geoffrey Cosentino Somewhere I am still not convinced don't you think that it is (70000+12105-8421) = 73684 to be allocated to production departments as 8421 gets knocked off from 12105 and the balance adds to the unabsorbed cost i.e 3684 (12105 - 8421)
@@geoffreycosentino1165 thank you so much for this explanation!
An easier way to look at it is to set up a Table, Remember its looking at how the costs are allocated across the different departments, by adjusting the costs from 30000 & 40000 to 42105 & 48421 respectively we already took into consideration the allocation between support departments therefore the only departments to look at again is Production
Mountaineering Kayaking
Costs allocated by HR (12/20)*42105 = 25263 (4/20)*42105 = 8421
Costs Allocated by Admin (15/40)*48421 = 18158 (15/40)*48421 - 18158
TOTAL 43,421 26579 =70,000
Hope this helps
this really helps, thanks !
I'm so confused. What was the point of the equations if we again allocated costs back to the support departments? The way I understand it, the goal was to somehow allocate $70,000 of the support costs to the operating departments. I don't see how that was done. :(
That would be the Direct Method. As the presenter said, (paraphrase) this method is for allocating to not only the operating divisions, but to reciprocate between the support departments - because they utilize each other's time & services too. I had to watch it a few times plus the othe video on the long version (a couple times).
An easier way to look at it is to set up a Table, Remember its looking at how the costs are allocated across the different departments, by adjusting the costs from 30000 & 40000 to 42105 & 48421 respectively we already took into consideration the allocation between support departments therefore the only departments to look at again is Production
Mountaineering Kayaking
Costs allocated by HR (12/20)*42105 = 25263 (4/20)*42105 = 8421
Costs Allocated by Admin (15/40)*48421 = 18158 (15/40)*48421 - 18158
TOTAL 43,421 26579 =70,000
Hope this helps
Bravo!
bless your soul
Thanks man ❤️
Is it possible to allocate three support divisions using recip method? Can you help with the algebra on this?
uses matrix's maths
Is this the fastest way?
thank you.
Wait how did you allocate more than you have? Pls Explain
not the most timely reply but, it is due to the allocation from the other support group and vice versa happening simultaneously in the solution, I.E. if you look at the set up there are cost hours going from HR to the Admin and back from Admin to HR, These "increase" the total allocation.
An easier way to look at it is to set up a Table, Remember its looking at how the costs are allocated across the different departments, by adjusting the costs from 30000 & 40000 to 42105 & 48421 respectively we already took into consideration the allocation between support departments therefore the only departments to look at again is Production
Mountaineering Kayaking
Costs allocated by HR (12/20)*42105 = 25263 (4/20)*42105 = 8421
Costs Allocated by Admin (15/40)*48421 = 18158 (15/40)*48421 - 18158
TOTAL 43,421 26579 =70,000
Hope this helps
@@cmcmmcmc how would this increase the total costs of $70,000 ? You’re literally taking the 70K total support department costs and allocating to each support department appropriately. Makes no sense that there would be an additional 20,000 in costs incurred just because you allocated the total original costs. If you take some of the HR cost and allocate it to admin then, it doesn’t mean you’re increasing costs. You’re simply taking away from one support department and adding it to the other. Can you please explain?
thank you so much
What if you have three departments?
yu Rain i kill myself hahaha
yu Rain you can then calculate with Matrix
@@Jenny-iz2fn Did you ever figure out the answer to this?
How did we get that 0.95
Wish me luck. I have a CPA BEC Exam on Jul 12th 2023, Dang! 😬😬
how do you get 20?
12000/20000 is the same as 12/20
So administrative costs (A) do not equal the administrative costs. Makes sense. Lol
Your Formula is not correct. It does not allocate the costs allocated to A (by H) back to H.
This formula does not fit the reciprocal method you explained in your last video, this formula does less steps.
I know math is hard... a doctor explained this to me, Thanks Doctor