Absorption Costing vs Marginal Costing | Explained with Example

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  • Опубликовано: 28 дек 2024

Комментарии • 148

  • @yaseenali5842
    @yaseenali5842 5 лет назад +92

    Your work is better then any youtuber, you are better then my class teacher, keep uploading such topics
    Very grateful to know about about this channel

    • @Counttuts
      @Counttuts  5 лет назад +3

      Thank you for the kind comment Yaseen :).

    • @georgephilip1966
      @georgephilip1966 3 года назад +1

      @@Counttuts For over and under absorption, why didn't we consider the variable cost of r 35?

  • @boitumelobonginkosikunene3547
    @boitumelobonginkosikunene3547 3 года назад +26

    A whole semester struggle cleared in 32 minutes🤯...your videos always blow my mind...and still, I don't expect anything less everytime I come back for more💯👍. Thank you, you've really helped me.

  • @kijeannie4317
    @kijeannie4317 3 года назад +14

    This really helped me understand marginal and absorption costing.... I had a mental block for years until now. Wonderfully explained .... such clarity.

  • @aphiwembande8661
    @aphiwembande8661 Год назад +1

    Haven't even watched this but I've already liked cause I know I know it will be fire

  • @maryamadekunle6732
    @maryamadekunle6732 6 месяцев назад

    This is amazing
    I am a tutor and I can say I understand it way better.
    Thank you for breaking this in the best possible way.

  • @ambrosemutai5463
    @ambrosemutai5463 2 года назад +4

    This is one of the best explanations for costing and has helped me understand absorption and marginal costing so well

  • @marcleven8477
    @marcleven8477 4 года назад +7

    very well explained you are doing a better job than my uni lecturers thanks a lot keep up the good work!

  • @karabobusang1942
    @karabobusang1942 Год назад +7

    You are Simply Amazing, you are literally my Lecturer for Management Accounting hey 🤞🏽❤️❤️.
    Please continue doing such amazing work 🙏🏻

  • @katrinaaliviza457
    @katrinaaliviza457 4 года назад +9

    I had a really hard time understanding this concept. I've watched a lot of videos read a lot and still nothing. But earlier today my friend shared this link. I'm so excited I can answer a question blindfolded 😂. Thank you so much for amaizing work sir.

    • @Counttuts
      @Counttuts  4 года назад

      Hello Katrina, glad that it helped. Thanks for the kind feedback.

  • @ajithkumarrj8545
    @ajithkumarrj8545 2 года назад +1

    After searching lots of classes Finally I found ur channel for this topic . Amazing explain all the concepts.tq soo much sir ❤️

  • @tatisammy9169
    @tatisammy9169 4 года назад +16

    How did you teach me 2 2hr classes in 32 mins thank you

  • @jiyaa8462
    @jiyaa8462 Год назад

    Thank you so much, you're literally a life saver, having my finals tmrw, this really helped!

  • @shantelhalley6976
    @shantelhalley6976 2 года назад

    Always dislike this topic but u made it simple... great job

  • @muigaisarah5342
    @muigaisarah5342 5 лет назад +6

    u've saved lots of students , thanks a lot

    • @Counttuts
      @Counttuts  5 лет назад

      You are welcome. Thank you for the kind feedback.

  • @boitumelomokotong4861
    @boitumelomokotong4861 2 года назад +4

    This was very informative. I enjoyed it and it has helped me tremendously👏🔥. God bless you.

  • @tonykiprop5802
    @tonykiprop5802 4 года назад +1

    Thank you Counttuts for the explainer videos. You really help us to be more efficient instead of searching all over for such good content. You are making a difference, Appreciated!

  • @daia8404
    @daia8404 4 года назад +2

    Thank you so much!!! I understand this more than I ever did in college

  • @luckyboyprins8456
    @luckyboyprins8456 Год назад

    lectures give us hard times of learning , i thank god i found you sir
    🎉🎊

  • @mariaindilileinge8761
    @mariaindilileinge8761 2 года назад +1

    I really had a block mind on this but cleared , thank you very much sir keep uploading such topics.

  • @darkknight6574
    @darkknight6574 3 года назад

    Can't believe how much helpful this video is.
    Thank-you so much!

  • @MrsObiako
    @MrsObiako Год назад

    Thank you Sir... I have truly understood this, especially how to treat over/under absorption cost...

  • @charitytheko8116
    @charitytheko8116 3 года назад +1

    Wow... everything makes sense now..Thank you counttut 😁

  • @RsWePVM
    @RsWePVM 4 года назад +2

    Thank you sir, crisp and clear. Much better than how my teacher in college is doing.

    • @Counttuts
      @Counttuts  4 года назад

      Thank you for the kind feedback.

  • @EmyrEdmund
    @EmyrEdmund 3 месяца назад

    Thank you! Your explanation and examples helped me understand, when I was struggling to make it click in my head :D

  • @wilkajohannes1003
    @wilkajohannes1003 3 года назад

    You are a life saver sir. Please continue doing this.

  • @hasvinvictor7146
    @hasvinvictor7146 4 года назад

    Best video to watch on absorption and marginal costing!!! Thank you so much @counttuts

  • @lisanaindjala2278
    @lisanaindjala2278 3 года назад +3

    Thank you so much sir for teaching me this😭I’m truly grateful and you are a great lecturer!

  • @ShaggyGriff96
    @ShaggyGriff96 2 года назад

    thank you for taking the time to do this, my understanding is now much clearer :)

  • @esaubanda
    @esaubanda 4 года назад +3

    Immensely elated! This is incredible! I appreciate. You deserve my utmost attention. Keep it up. More blessings on you, great work, awesome!! Thanks

  • @becomingCA-SA
    @becomingCA-SA 2 года назад

    you definitely got a subscriber by the wat you explained this 💯

  • @smartmgbachi9173
    @smartmgbachi9173 4 года назад +3

    if i dont comment i must be selfish. thank you so much for breaking down this topic. God bless you

    • @Counttuts
      @Counttuts  4 года назад

      Thank you :) Blessings

  • @barbaraedith4111
    @barbaraedith4111 5 лет назад +3

    You are such a wonderful Teacher/tutor. You are a star. I understand a lot from your video better than reading any book. Excellent.
    Do you have any other accounting videos? please upload more.

    • @Counttuts
      @Counttuts  5 лет назад +1

      Thank you Barbara, you can visit our channel for all accounting videos, and more to come.

  • @sharnyn7322
    @sharnyn7322 3 года назад +1

    I cannot thank you enough for this video!!!

  • @chiposvubure7150
    @chiposvubure7150 4 года назад +3

    Thank you so much 🤝 Your are a good lecturer

    • @chiposvubure7150
      @chiposvubure7150 4 года назад +1

      I am looking for more videos for MAC2601 i can't find them 😢

  • @MultiSinovuyo
    @MultiSinovuyo 9 месяцев назад

    Thank you for this video, made such a big difference

  • @nonkululekohlatshwayo8164
    @nonkululekohlatshwayo8164 Год назад

    Sir. You are simply the best

  • @madalitsombewe9948
    @madalitsombewe9948 4 года назад

    Love your teaching (simply simple and clear )

  • @davidgarvin2281
    @davidgarvin2281 5 лет назад +1

    Thank you for explaining this topic thoroughly, you have been very helpful.

  • @sophielalalification
    @sophielalalification 2 года назад +1

    Simple, clear and straight to the point! Thank you!

  • @straightouttamatrix
    @straightouttamatrix 4 года назад +3

    This was more than i was looking for and in a best way possible. Really appreciate the effort SIR. Thanks alot🙏🏻

  • @chandajere9586
    @chandajere9586 2 года назад

    This is very clear and concise.Thank you so much

  • @alexwhelan981
    @alexwhelan981 2 года назад

    Thank you very much. Very informative and helped me prepare for an interview. Keep up the good work!

  • @ropafadzochivizhe4561
    @ropafadzochivizhe4561 3 года назад

    Thank u for the presentation it really helped me especially absorption costing

  • @fredrick_mwaura
    @fredrick_mwaura 2 года назад

    This is very well articulated. Keep up the good job.

  • @baloonram4959
    @baloonram4959 3 года назад

    That was a very good explanation, now i am ready for exams, thank you sir :D

  • @deepakkrishnakb
    @deepakkrishnakb 4 года назад +1

    Simple and nice explanation,thanks alot

  • @walterbigblue
    @walterbigblue 3 года назад +3

    You stated that over absorption of overheads is deducted from the P&L and under absorption is added to the P&L. My understanding is that it should be the other way around. Under absorption of overheads are deducted from the P&L while over absorptions are added thus increasing gross profit.

    • @Counttuts
      @Counttuts  3 года назад

      That would be incorrect actually. Follow our explanation in the lesson again to understand.

  • @mbasalamla7533
    @mbasalamla7533 2 года назад

    wow 🙌🙌🙌 thank you Mr for you help
    now I understand clearly

  • @praisemutoko3175
    @praisemutoko3175 4 года назад +1

    Thank you soo much, that was worthwhile. Now i am confident that i understand

  • @ThomasSheriff21Chindende
    @ThomasSheriff21Chindende Год назад

    the best ever explanations

  • @tiff8831
    @tiff8831 11 месяцев назад

    This was very helpful. Thanks sir

  • @alenigodwin560
    @alenigodwin560 Год назад

    U explained well brother thank you i wish we would get more examples with opening inventory

  • @JanetMong
    @JanetMong 7 месяцев назад

    Thankyou so much! Well explained

  • @ryan4314
    @ryan4314 4 года назад +2

    u saved my life thank you

  • @kudsiamow3441
    @kudsiamow3441 5 лет назад +4

    Thanks a lot for explaining in details! ♥

  • @katienelson8163
    @katienelson8163 7 месяцев назад

    thank you so much! this really helped me

  • @ronaharnischleinitz6335
    @ronaharnischleinitz6335 4 года назад +2

    Thanks alot, was much of help.

  • @lovehurtswhenattached92
    @lovehurtswhenattached92 2 года назад

    Thanks highly appreciated explanations on point and format easy for anyone to understand 👍 😀

  • @neonmuzik8979
    @neonmuzik8979 4 года назад

    thanks sir, I think this made up my preparation of an exam I ama bout have! thx again

  • @mohamedfaisal4123
    @mohamedfaisal4123 Год назад

    Top notch explanation.

  • @lucianakale1132
    @lucianakale1132 2 года назад

    Woow…….I don’t know how to thank you, I was wondering how am gonna face my exams next week

  • @paysonobi6548
    @paysonobi6548 3 года назад

    I enjoyed your teaching

  • @RealHesk
    @RealHesk 3 года назад

    Thanks alot for your service. You've helped me

  • @huisinyii4353
    @huisinyii4353 Год назад

    i was wondering why when there is higher closing stock = profit will be higher when using absorption costing, and your example easily let me understand how it works. Thank you!

  • @izzyokafor8888
    @izzyokafor8888 2 года назад

    Keep up the good work watching from Nigeria. Can we also suggest topics for you to teach?

  • @Dendele2024
    @Dendele2024 3 года назад

    Best explanatory video 🥂

  • @yerroa.jallow4452
    @yerroa.jallow4452 2 года назад

    thank you for the video, its really helpful.

  • @biandaful
    @biandaful 4 года назад +2

    Well explained!!!!

  • @Anele_Gcabashe
    @Anele_Gcabashe Год назад +1

    My uni. Must start paying you please 😹❤️

  • @louisebowa6032
    @louisebowa6032 3 года назад

    This was really helpful, thank you very much🙏🏾

  • @symplytomi5178
    @symplytomi5178 3 года назад

    God bless you,you are a great lecturer!!!!

  • @Ruth-Mocheche
    @Ruth-Mocheche 4 года назад +1

    nice lecture. big ups

  • @musondamulenga9306
    @musondamulenga9306 5 лет назад +2

    thanks a lot ,great explanation!

    • @Counttuts
      @Counttuts  5 лет назад

      You are welcome, and thank you Musonda.

  • @JosephSatoh-em1sl
    @JosephSatoh-em1sl 3 месяца назад +3

    Who enjoyed it in 2024😂

  • @braynotieno9564
    @braynotieno9564 3 года назад

    Good work 👏 🙌 👍

  • @danisabaloyi608
    @danisabaloyi608 4 года назад

    Thank You, your work is amazing

  • @akankshathooti
    @akankshathooti 5 лет назад +2

    Thanks sir grt explanation

    • @Counttuts
      @Counttuts  5 лет назад

      Thank you. You are welcome.

  • @0dawisdom478
    @0dawisdom478 3 года назад

    Under and over absorbed use to confuse me, now im fine thnx

  • @patrickugwuegbu6119
    @patrickugwuegbu6119 2 года назад

    Very informative

  • @patricklikalamu8264
    @patricklikalamu8264 11 месяцев назад

    this is very helpful

  • @Dan-vk7jc
    @Dan-vk7jc 2 года назад

    Thanks so much assisted me so much!

  • @chaly839
    @chaly839 3 года назад

    Good lecture thank you so much. there is no problem with the way you have treated over/under absorption, my issue is on the part where you said when there is an increase in opening or closing inventory then the creation of overe/under absorption, my thinking is instead of increase in opening and closing let it be the difference between the budgeted production and the actual production.

  • @thembekilegwala3465
    @thembekilegwala3465 3 года назад

    Thank you. you are amazing

  • @fahimjalal2703
    @fahimjalal2703 3 года назад

    Thx for making the vid 😊

  • @mweembemunsaka6312
    @mweembemunsaka6312 23 дня назад

    Can these be referred to as income statements as well?

  • @aduratomibabalola9884
    @aduratomibabalola9884 3 года назад

    Amazing lecture. cheers.

  • @ntcuong01ct1
    @ntcuong01ct1 4 года назад +1

    Dear Friends,
    I have a question:
    I want to setup Absorption costing of a product in year 2020. Next, I want to compare actual costing and Absorption costing in this product by month, year. How do I setup?.

  • @boineelomasupe740
    @boineelomasupe740 Год назад

    Thank you❤❤❤❤❤

  • @fiifiadu-appiah335
    @fiifiadu-appiah335 5 лет назад +2

    What if the the fixed prd cost 30000 was not given but you had the FC per unit and the closing stock? How do you find the over/under absorption..

  • @mikanyay
    @mikanyay Год назад

    Thank you 😊

  • @bethafek6170
    @bethafek6170 3 года назад

    Hello, what about if you bought plant and machinery, do you add it on the absorption costing?

  • @karenagyeman6847
    @karenagyeman6847 3 года назад

    Please what will I do if there is a variable selling,distribution and administration costs of about 20% of the sales value

  • @DaiGua
    @DaiGua 3 года назад +1

    Sir, could I know why the closing inventory in absorption costing, production of 6000&7000units is zero? It shouldn’t have 1000units? Why

    • @adaeze_
      @adaeze_ 3 года назад

      It is not zero
      Pay attention to the video again

  • @sbohmdu2557
    @sbohmdu2557 4 года назад

    it helps a lot, thanks.

  • @danielokere3624
    @danielokere3624 3 года назад +1

    Please sir how do u know when to apply the absorbed overhead formula I'm a bit confused 😔

  • @khalifahmedmohamed7204
    @khalifahmedmohamed7204 3 года назад

    Thanks ☺️☺️☺️

  • @aliakim1934
    @aliakim1934 Год назад

    May you please upload target costing and life cycle costing

  • @nokwandanoks1559
    @nokwandanoks1559 10 месяцев назад

    Good day can i ask why you not bringing forward the closing. Inventory to the next production of 7000 units meaning the 41000 must be the opening for the production of 7000 units than closing Inventory will be 41000

  • @关家俊5325
    @关家俊5325 3 года назад

    hey sir, why under/over absorbed overhead only included fixed production cost ,how about the variable production cost

  • @sowdaayaan1843
    @sowdaayaan1843 3 года назад

    The closing inventory for production of 6000 should it not be the opening inventory for the next production that 7000 units?