+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!
I wish you were my professor. Mine just mumbles and scribbles on the board. I never know whats going on in class, if it weren't for this channel I wouldn't be passing. Thank you for taking the time to make these videos.
Sir, you are naturally gifted. I wish you are the guy who stands in from of our class.Your explanation is simply and clearly magnificent .you deserve to be called a professor.thank you for the sensational job.You really gave me correct foundation under this topic.thank you so much, professor.
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.
I am an MBA student, and this is amazing. I am also a teacher, and I feel like I am in the driver's seat in this course. I love your teaching approach.
Thank you for saving my life for my accounting exam. I don't know how, but my professors have a gift for making everything seem SO difficult, whereas when you explain it, it seems very straightforward.
These videos are incredible. Presented as timely, and informative as possible. These videos have absolutely given me at least, a 50% better chance along with studying my book to do well on my finals. I'm so very thankful! They enable my book to make sense to me! Double WOW !!!
Robert, I really appreciate all your comments. Positive comments like yours keeps me motivated to continue putting out more videos. Best of luck to you on your managerial accounting final!
I have the worst instructure; he only reads the slides and he will ask question without giving us a chance to answer because he always answers them. I am so delighted I found this video.
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!
You are amazing!! I used your videos for Accounting 1 and now I continue to use them for Accounting 2 as well as Cost Accounting! I recommend your videos to all of my friends. Thank you so much
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.
FANTASTIC CHANNEL!! I'm in a MAcc program and this is phenomenal. Explains complex concepts that normally involve 20 pages of textbook + several hour long lectures in minutes.
Edspira takes something I would study in a book for a while and just makes it so simple to picture and apply in your head. love everything you do and have done sir
you can't imagine how much you helped me in my graduation from the faculty of commerce this year sir! thank you so much .. it wouldn't happen without you thanks again
You just make things so easy to understand that appears so complex when my professor teaches.. Please keep up this great work. God bless you with more success.
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
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
you definitely are heaven sent sir! I'm really glad you take time and effort in your videos. you are helping a lot of students. Especially me, CPA in transit. :D thank you!
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.
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 :/
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).
Quarter 2 is better than quarter one because there is a decrease in production cost (Fixed Overhead Cost) as a result of an increase in units produced. That's my opinion, but please correct me if am wrong. Thank you
In paper looks better, But as in the video said, you are putting that Fixed OH Cost into you products sitting in inventory, What good makes to your firm having that cost in your inventory. If you sell those products in inventory next quarter then your net income will be reduced, because you are bringing those costs already incurred to the next quarter (you defer them) or worse, that product gets damaged or expired so, now you can not sell them, you will lose the DM, DL, VOH and FOH costs you allocated per product, so it will hurt even more the finances of the company.
COGS = beg inventory + production - end inventory, what is happening to the other 10 balloons, shouldn't they be included in the in Q2 COGS since we didn't sell them?
Are expenses double counted if they are included in product cost? With labor for example, direct labor is a product cost component that would be expensed when product is sold through COGS, but what about when weekly payroll is booked, is that not then hitting the P&L twice?
Direct labor is not expensed with weekly payroll. You debit work-in-process inventory and credit wages payable (or cash). The direct labor costs put in the work-in-process inventory account are later transferred to the finished goods inventory account, and then are expensed through costs of goods sold when the product is sold
I hv a question here..pls help me to clarify.. in absorption costing the FOH is treated as part of COGS-production cost…if so why in 2nd quarter didnt tk up 20 units of making but just 10 ?thanks in advance
I’m just curious what happens under absorption costing to our income if for example we produce 20 balloons and sell 10 when we also have for example some sales commission and fixed administrative expenses because all the examples in the videos are simple.
I don't even know why I go to University when this free resource is 100x better than anything they have to offer. God bless you Sir.
Thank you!
manunited998 for a degree lol 😂😂😂
I feel the same way
I also feel the same way like why do they complicate stuff, smh.
You need the certificate bruh.. Just knowing this stuff won't benefit you. You need the certificate too
I just passed a CPA exam thanks to these videos! Keep up the great work.
+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!
congrats and good luck in life
Wow congrats!!!
Congratulations 🥳
Congrats!
I wish you were my professor. Mine just mumbles and scribbles on the board. I never know whats going on in class, if it weren't for this channel I wouldn't be passing. Thank you for taking the time to make these videos.
+Grace Bunting It's my pleasure. Thanks for making me laugh and bringing a smile to my face!
same here. Mine just read the notes... Basically no one knew what is going on and we need to prepare for the exam.
As for the scribbling part....that's when I just decide to sleep during lectures
@@hkangelfish0710 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 😅😅 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 😅 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 😅 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 😅😅😅😅😅 0:03 😅 0:03 0:03 😅😅 0:03 😅😅😅 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03 😅 0:03 0:03 0:03 0:03 0:03 0:03 0:03 0:03
i passed my F2 ACCA management accounting exam because of you EDSPIRA, a huge thanks!
As someone who struggles reading through text books for hours, your videos are a god send. Thank you so much!
Wow, thank you!
Same here (after 2 years tho. lol)
Sir, you are naturally gifted. I wish you are the guy who stands in from of our class.Your explanation is simply and clearly magnificent .you deserve to be called a professor.thank you for the sensational job.You really gave me correct foundation under this topic.thank you so much, professor.
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.
I am an MBA student, and this is amazing. I am also a teacher, and I feel like I am in the driver's seat in this course. I love your teaching approach.
Shut the fuck up
@@joshuavickers9820 depressed today aren't we
Thank you for saving my life for my accounting exam. I don't know how, but my professors have a gift for making everything seem SO difficult, whereas when you explain it, it seems very straightforward.
Your videos just saved me from failing my finance and accounting exams. THANK YOU!!!
Glad to hear it. Congratulations on passing your classes!
These videos are incredible. Presented as timely, and informative as possible. These videos have absolutely given me at least, a 50% better chance along with studying my book to do well on my finals. I'm so very thankful! They enable my book to make sense to me! Double WOW !!!
Robert,
I really appreciate all your comments. Positive comments like yours keeps me motivated to continue putting out more videos. Best of luck to you on your managerial accounting final!
Yes, i to am cursed with a bad teacher. But, my teacher shouts bad English (she is from China)
I have the worst instructure; he only reads the slides and he will ask question without giving us a chance to answer because he always answers them. I am so delighted I found this video.
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!
Why should someone dislike this great educative video? Thanks for passing out knowledge...Nice video
3 hours till finals and you're contributing to turning water into wine. A1 my man, thankyou.
i don't think i would have passed if it weren't for you! thank you very much for making these videos.
No problem, congratulations on passing the course!
Studying for CPA right now and your vids have been a great help. Thank you so much!
Best of luck!
You have just earned a subscriber. I am not being arrogant or anything, but I rarely subscribe to educational channels; however, you sir, deserve it.
Came across your videos recently. Simple yet effective teaching. I come running to your channel wherever I need clearing off doubts😂😂. Thanks!!!
Please don't stop making these videos they've helped me so much with my exams and revision the breakdown on each step is excellent thankyou!!!
Sir, you are saving my life here. I'm reviewing for our comprehensive exam in the undergrad. Thank you so much for these videos.
You are amazing!! I used your videos for Accounting 1 and now I continue to use them for Accounting 2 as well as Cost Accounting! I recommend your videos to all of my friends. Thank you so much
have a managerial accounting exam in 6 hours and im only passing because of you . THANK YOU SO MUCH
good luck
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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I am studying with regent business school this video is very helpful. You are the best teacher thank you so much sir.
FANTASTIC CHANNEL!! I'm in a MAcc program and this is phenomenal. Explains complex concepts that normally involve 20 pages of textbook + several hour long lectures in minutes.
You are epitome of perfection in every sense. I can't be more thankful to you!
Edspira takes something I would study in a book for a while and just makes it so simple to picture and apply in your head. love everything you do and have done sir
Thank you for the kind words!
you can't imagine how much you helped me in my graduation from the faculty of commerce this year sir! thank you so much .. it wouldn't happen without you thanks again
Thanks so much. This was very helpful to understand the method. I especially appreciated the last few minutes where it all came together!
You just make things so easy to understand that appears so complex when my professor teaches.. Please keep up this great work. God bless you with more success.
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.
No problem. I hope you pass the CPA exam on your first try and go on to have an excellent career!
Very well explained thank you very much. Much better than the long lengthy difficult to understand book.
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
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
This helped me out significantly. Nice and clear compared to my actual teacher. Good work!
Thank you for clearing up this method of costing, excellent presentation!
best accounting professor ever!!
Thanks for the confidence booster!
9 years later n this dude is still cooking
you are just absolutely clear and good at explaining! keep on and thank u!
You're very welcome!
you definitely are heaven sent sir! I'm really glad you take time and effort in your videos. you are helping a lot of students. Especially me, CPA in transit. :D thank you!
thank u so much for making such kind of video!!! really appreciate your efforts
Thank you for your videos! It's really helpful and I recommend it to all my uni friends :)
Thank you for the encouragement and support!
Great explanation sir TQ for this..
It helps alot for my preparation for cma final 👏🙏
- Anil from INDIA
Good luck on the CMA!
My professor literally can't even teach. How hard is it to give us some examples like this video.
Terrific explanation, sir. Thank you!
I really appreciate your simplicity. why aren't you my professor
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.
Thanks!
Very helpful for ACCA preparation!
Thank you
Welcome!
One Word: Excellent.
Thank you sir! Best wishes
simple and precise explanation. great work. thanks
Oooh perfect,now i know that why absorption costing profit increases when their is increase in production.
That is really a very clear explaining,
Thank you!
This video was a great tool to understand the concept, thank you so much!
Thanks for the brief introduction sir, God bless you ♥️
the way yu teach is amazing.... plz continue to make videos tnx..
Thank you!
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 :/
It's really helpful sir
Love and respect from jalalabad Afghanistan
Thanks! I'm always surprised at how many different countries watch these videos. Hello to Afghanistan!
Thank you for this! I'm trying to defend Absorption Costing for our debate.
+Elidesa Cajeles (5sosfifthhero) Thank you and good luck with the debate!
+Education Unlocked really nice for studying online...looking forward for more stuff..!
Thanks for video learnings like this. ☺ God Bless 💖
THANKS FOR YOUR CLASS . LEARN A LOT .
云生活云朵快报 My pleasure, thank you!!
Your videos are so effective, you've helped me out so much. Thank you!
Thanks, and good luck in your studies!
Thank you so much Edspira!
You are the best! God bless you
Thank you!
great video! thank you !
Thanks man. You can explain really well
Thanks a lot. Your videos are of great help to me.
No problem! Best wishes :)
You, sir, are an absolute legend! Thank you! :)
Really this was very helpful to me thanku sir👌🙂
give that man a bell
Better than my uni lecturer
Thank you. This is excellent.
Setting => playback speed => 1.75
Your welcome!
Really, really good video! Thanks so much!!!!
Great explanation 😃
Great video! Thanks for the help
No problem my friend
This is awesome!!!!
Sophie Wang Thank you!
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).
A very good learning video...
Thank you sir!
thank you very much, these videos help so much.
Thank you! I love your videos!
Thank you very much sir. This helped me a lot.
What is the name of the software that you use for teaching?
SmoothDraw
thanks you so much,you take me to another step
trust me u r god gifted. Thank u sir :)
Thanks man, really helped me a lot.
This is very helpful. Thank you
Quarter 2 is better than quarter one because there is a decrease in production cost (Fixed Overhead Cost) as a result of an increase in units produced. That's my opinion, but please correct me if am wrong. Thank you
but you have a lot of inventory, and perhaps they wont be sold next quarter. Higher risk, but besides that yes. Better.
In paper looks better, But as in the video said, you are putting that Fixed OH Cost into you products sitting in inventory, What good makes to your firm having that cost in your inventory. If you sell those products in inventory next quarter then your net income will be reduced, because you are bringing those costs already incurred to the next quarter (you defer them) or worse, that product gets damaged or expired so, now you can not sell them, you will lose the DM, DL, VOH and FOH costs you allocated per product, so it will hurt even more the finances of the company.
Thanks Professor. Your super helpful!!!!!!!!!!!!!!!!!!
COGS = beg inventory + production - end inventory, what is happening to the other 10 balloons, shouldn't they be included in the in Q2 COGS since we didn't sell them?
Are traditional costing systems (job order and process costing) an example of absorption costing?
Thank you for the video! :)
Are these videos suitable for me to watch if I study AS levels or Alevels?
Are expenses double counted if they are included in product cost? With labor for example, direct labor is a product cost component that would be expensed when product is sold through COGS, but what about when weekly payroll is booked, is that not then hitting the P&L twice?
Direct labor is not expensed with weekly payroll. You debit work-in-process inventory and credit wages payable (or cash). The direct labor costs put in the work-in-process inventory account are later transferred to the finished goods inventory account, and then are expensed through costs of goods sold when the product is sold
Very good, thanks
I hv a question here..pls help me to clarify.. in absorption costing the FOH is treated as part of COGS-production cost…if so why in 2nd quarter didnt tk up 20 units of making but just 10 ?thanks in advance
Brilliant!
Thanks!
What about treatment of Production overhead estimated and actual both are given ?
great video
+Farjad Mallick Thanks!
Excellent,
I’m just curious what happens under absorption costing to our income if for example we produce 20 balloons and sell 10 when we also have for example some sales commission and fixed administrative expenses because all the examples in the videos are simple.