Absorption Costing

[@manunited998]

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.

[@Edspira]

Thank you!

[@aminulhaque4821]

manunited998 for a degree lol 😂😂😂

[@yoqiu_]

I feel the same way

[@B.ANGELS2023]

I also feel the same way like why do they complicate stuff, smh.

[@mdabdullah4379]

You need the certificate bruh.. Just knowing this stuff won't benefit you. You need the certificate too

[@dorororo]

I just passed a CPA exam thanks to these videos! Keep up the great work.

[@Edspira]

+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!

[@ZiaurRahmanAdvocate]

congrats and good luck in life

[@gm5328]

Wow congrats!!!

[@siziwelupondo2530]

Congratulations 🥳

[@henryd7302]

Congrats!

[@NowakiFangirl]

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.

[@Edspira]

+Grace Bunting It's my pleasure. Thanks for making me laugh and bringing a smile to my face!

[@hkangelfish0710]

same here. Mine just read the notes... Basically no one knew what is going on and we need to prepare for the exam.

[@fortunemaphosa9920]

As for the scribbling part....that's when I just decide to sleep during lectures

[@princemukungurutse3316]

@@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

[@abubacarrbah7626]

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.

[@adafunk]

As someone who struggles reading through text books for hours, your videos are a god send. Thank you so much!

[@Edspira]

Wow, thank you!

[@laibamasood2296]

Same here (after 2 years tho. lol)

[@FitWithCalisthenics]

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.

[@gaonemokute8896]

i passed my F2 ACCA management accounting exam because of you EDSPIRA, a huge thanks!

[@kestonluke6439]

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.

[@joshuavickers9820]

Shut the fuck up

[@warmongerfenrir8524]

@@joshuavickers9820 depressed today aren't we

[@emilybabette]

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.

[@acto5948]

Your videos just saved me from failing my finance and accounting exams. THANK YOU!!!

[@Edspira]

Glad to hear it. Congratulations on passing your classes!

[@rob8482]

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 !!!

[@Edspira]

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!

[@calebriutta9867]

Yes, i to am cursed with a bad teacher. But, my teacher shouts bad English (she is from China)

[@heyitschika]

i don't think i would have passed if it weren't for you! thank you very much for making these videos.

[@Edspira]

No problem, congratulations on passing the course!

[@mamounalkhaileh7826]

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.

[@Edspira]

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!

[@yosefnaiman5758]

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

[@xxQuInNzeLLxx]

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!!!

[@veenarasagnya]

have a managerial accounting exam in 6 hours and im only passing because of you . THANK YOU SO MUCH

[@ZiaurRahmanAdvocate]

good luck

[@alisonw4883]

Studying for CPA right now and your vids have been a great help. Thank you so much!

[@Edspira]

Best of luck!

[@NataliaM009]

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.

[@sazzadhossain1850]

Dear Sister I am also student Chartered Accountant in Bangladesh [phone]

[@sazzadhossain1850]

Natasha Matthew pls call me here [phone]

[@killianmorar7662]

3 hours till finals and you're contributing to turning water into wine. A1 my man, thankyou.

[@femiayinuola2725]

Why should someone dislike this great educative video? Thanks for passing out knowledge...Nice video

[@MrShem123ist]

Sir, you are saving my life here. I'm reviewing for our comprehensive exam in the undergrad. Thank you so much for these videos.

[@Rorisang-xq6dp]

I am studying with regent business school this video is very helpful. You are the best teacher thank you so much sir.

[@MetallicOpeth]

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

[@Edspira]

Thank you for the kind words!

[@J3lazeify]

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.

[@RA-nu8ue]

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

[@jimmyc4611]

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.

[@mishra-p8o]

You are epitome of perfection in every sense. I can't be more thankful to you!

[@DeXterZeeE]

Came across your videos recently. Simple yet effective teaching. I come running to your channel wherever I need clearing off doubts😂😂. Thanks!!!

[@yuniorgalardy2781]

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]

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

[@gregorybai4226]

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]

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

[@prashanthsk27]

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.

[@kathyJF15]

best accounting professor ever!!

[@Edspira]

Thanks for the confidence booster!

[@jeanmaxwell5149]

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

[@be2hands742]

Very well explained thank you very much. Much better than the long lengthy difficult to understand book.

[@candaceseayfolks7954]

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

[@nisserov]

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 :/

[@SunsetFilmsCo]

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

[@spof465]

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

[@johnkang6221]

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

[@BakeLee]

9 years later n this dude is still cooking

[@amadhafez6309]

One Word: Excellent.

[@Edspira]

Thank you sir! Best wishes

[@intrinsicallyme8404]

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]

Thanks!

[@valeriagallo1069]

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

[@Edspira]

You're very welcome!

[@Convees]

Very helpful for ACCA preparation!

[@ItsMickSay]

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!

[@taj935]

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

[@Edspira]

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

[@nabeelahmad5015]

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

[@2000hwhump]

Terrific explanation, sir. Thank you!

[@elicajeles]

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

[@Edspira]

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

[@Sneha_agarwal8]

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

[@vijjapuanilkumar5152]

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

[@Edspira]

Good luck on the CMA!

[@shivmishra4205]

thank u so much for making such kind of video!!! really appreciate your efforts

[@madurameshan9342]

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

[@Edspira]

Thank you for the encouragement and support!

[@云生活云朵快报]

THANKS FOR YOUR CLASS . LEARN A LOT .

[@Edspira]

云生活云朵快报 My pleasure, thank you!!

[@nomnom6136]

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

[@Edspira]

Thank you!

[@waaafey3135]

Thanks for the brief introduction sir, God bless you ♥️

[@Sam-yt3dq]

Thank you

[@Edspira]

Welcome!

[@reverbvibes932]

You are the best! God bless you

[@Edspira]

Thank you!

[@navaskoorimannil]

simple and precise explanation. great work. thanks

[@Kevin-jk1vr]

Better than my uni lecturer

[@bricksInMyBp]

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).

[@tarekalsherif57]

That is really a very clear explaining, Thank you!

[@JesusLoveIsForEveryone]

Thanks for video learnings like this. ☺ God Bless 💖

[@mariag1926]

great video! thank you !

[@lesleynakeng2100]

give that man a bell

[@petersiep]

This video was a great tool to understand the concept, thank you so much!

[@kenizchess4434]

Thank you. This is excellent.

[@faisalmuhammad3614]

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

[@Bovinepug]

but you have a lot of inventory, and perhaps they wont be sold next quarter. Higher risk, but besides that yes. Better.

[@abrahamcastanon5342]

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.

[@hughdamian1188]

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?

[@acovarrubias12]

Thank you so much Edspira!

[@MrBuckethead911]

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

[@katiemclaughlin1582]

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

[@Edspira]

Thanks, and good luck in your studies!

[@huynhtrungkien6233]

Setting => playback speed => 1.75 Your welcome!

[@tajwarchowdhury22]

Thanks man. You can explain really well

[@Bipplov]

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

[@Edspira]

No problem! Best wishes :)

[@kokilaudawatte2980]

Really this was very helpful to me thanku sir👌🙂

[@Sophie-jl3sj]

This is awesome!!!!

[@Edspira]

Sophie Wang Thank you!

[@sumitdhavale7969]

Hello Professor, I have some doubts. 1. if we made more products why is the sales same ? 2. If we made more products how is the material used same so how is the material cost same ? 3. If we made more product then machine hours will be more and labor hours too so how is that remains same? All that affects absorption costing correct ?

[@farhanalam4413]

Great explanation 😃

[@ZiaurRahmanAdvocate]

A very good learning video...

[@Edspira]

Thank you sir!

[@sharengonsalves4451]

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

[@RaRa-Online]

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

[@mattyred]

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

[@ntcuong01ct1]

Dear Friends, I have a question: 1/ In the absorption costing system, I think the difference between Absorbed cost and full costing. Absored cost = direct material + direct labor + variable overhead manufacturing + fixed overhead manufacturing for a product or a brand or a product line. full cost= Absored cost + all corporate-related expenses for all product or all brand or all product line. Could you help?. Thank you.

[@amiemohan8578]

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

[@mrdimosssssss]

thank you very much, these videos help so much.

[@rehnumatarannum869]

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

[@padairmacleod9371]

Great video! Thanks for the help

[@Edspira]

No problem my friend

[@ntcuong01ct1]

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?.

[@mbarnaamij]

This is very helpful. Thank you

[@nomoremunyanyavira7988]

thanks you so much,you take me to another step

[@victorpopukh5451]

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.

[@AnoushaSpeaks]

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

[@kawishraza3493]

Thanks man, really helped me a lot.

[@danethomas3850]

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?

[@Edspira]

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

[@loril6773]

Thank you! I love your videos!

[@Farshid-rg7he]

Shouldn't VOH differ by the number of produced units while FOH remains the same regardless of the quantity of products?

[@patkuffour3493]

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

[@dhirajmatwani7559]

What about treatment of Production overhead estimated and actual both are given ?

[@eilenkatarinalunde2969]

Very good, thanks

[@rsimkul1136]

What is the name of the software that you use for teaching?

[@Edspira]

SmoothDraw