Activity Based Costing | ABC Costing v/s Traditional | CMA | ACCA F5 | ACCA F2 | Commerce Specialist

This video from Commerce Specialist explains the concept of Activity Based Costing. Detailed explanation is given for ABC Costing Techniques, cost drivers, cost driving activities, comparison between ABC and Traditional Costing and a fully solved example.
This tutorial/lecture video is very relevant and useful for students of B. Com, O Levels, A Levels, BBA, MBA, CA, ACCA, CMA, CIMA, CIA and CPA.
About:
Commerce Specialist is a Certified Management Accountant (CMA) from USA, holds Certification in International Auditing from ACCA-UK, a Bachelors in Accounting, A teaching qualification of B.Ed., an MBA in Finance along with over 20 years’ experience of working in various MNCs in different sectors including Banking, NBFIs, Retail, Oil & Gas, Telecommunication, and top business schools, colleges and universities.
website link: www.comparativeedge.com
Link of my previous videos:
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3. Inventory Valuation [Systems & Methods]: • Stock Valuation System...
4. Break Even Analysis (CVP Analysis) • Break-Even Analysis | ...
5. IAS 7 Statement of Cash Flows: • Statement of Cash Flow...
6. Accounting for Receivables: • Accounting for Receiva...
7. Ratio Analysis • Ratio Analysis | Finan...
8. MBA VS ACCA • BBA V/S ACCA | MBA V/S...
9. Capital Budgeting / Investment Appraisal: • INVESTMENT APPRAISAL |...
10. Basic Accounting: • ACCOUNTING BASICS | FU...
11. Accounting Basics Part 2: • ACCOUNTING BASICS 2 | ...
12. How to Pass CMA • HOW TO PASS CMA USA EX...
13. Operate or Shut down decisions • Operate or Shut Down D...
14. Life Cycle Costing • LIFE CYCLE COSTING | P...
15. HOW TO PASS ACCA EXAM • HOW TO PASS ACCA IN FI...
16. IAS 33 (EARNINGS PER SHARE) • How to calculate Earni...
17. TARGET COSTING • Target Costing | Targe...
18. HOW TO DO CMA USA ESSAY SECTION • How to attempt CMA ESS...
19. ERRORS & THEIR RECTIFICATION • Rectification of Error...
20. SUSPENSE ACCOUNTS • Suspense Account | Rec...
21. OPERATING & FINANCIAL LEVERAGE • Operating Leverage | F...
22. ACCOUNTING CONCEPTS & PRINCIPLES • Accounting Concepts & ...
23. CPA • CPA USA | Certified P...
Viewers and students can contact me on [e-mail] or email me at [e-mail] or whatsapp me on [phone].
#activitybasedcosting #accaf5 #costaccountingabc

[@sandeepmehta3888]

This is a little note to let you know just how helpful you have been. You’re such an amazing teacher and I hope you know that! Thank you!

[@CommerceSpecialist]

Thanks a lot dear for your appreciation, thats what keeps me going.

[@tereziafucova1308]

@@CommerceSpecialist EXCELLENT EXPLANATION!!! Many thanks. Wishing you all the very best.

[@lionelsongweh]

Thanks sir from Cameroon. I LOVE ABC BECAUSE OF YOU SIR

[@oladungift387]

Your teaching ability shows how passionate and gifted you are. Thanks a lot From Nigeria

[@CommerceSpecialist]

Thx my dear🙏👍

[@asifansarii600]

Thanks very much for uploading the video. I found very helpfull,the way you explain things is appreciable.

[@SJS001]

The best teacher in the world.

[@chalaniwathsala4905]

Thanks So much, This is very useful..

[@harikrishnagoud2147]

Excellent explanation sir 🙏🙏👏🏼👏🏼👏🏼

[@aleezaali0777]

A sincere thank you for being the guiding light in my CMA exam journey. You made the journey way less rocky. Big high-five!♥️

[@CommerceSpecialist]

Ur welcome dear🙏👍

[@Ramshackle23]

You are an incredible teacher! Thank you so much!

[@CommerceSpecialist]

You are welcome🙏

[@Aryantiwari1119]

Thankyou sir. Great help

[@moithekimatyeni]

I Knew Nothing Before I Watched This Video, But I Know A Lot More Now. Thank You So Much ❤

[@CommerceSpecialist]

Thanks dear

[@alicenyangoma8040]

Thank you so much, I had never understood this with my tutor until I met you. Blessings follow you Sir

[@CommerceSpecialist]

Thanks a lot my dear🙏👍

[@alletanzuma7058]

You are good at what you are doing. Super star. Very clear explanations and links to practical environment

[@CommerceSpecialist]

Thanks dear

[@777fareez]

Great explanation ! Very clear and detailed !

[@CommerceSpecialist]

Thx dear

[@masudpervez9872]

Your lecture is just awesome for concept clarification.

[@CommerceSpecialist]

Thx Masud😊👍

[@lucrishagilbert1482]

Watching from Zimbabwe 🇿🇼

[@CommerceSpecialist]

👍🙏

[@vietttm4619]

Thank you very much Sir. Please keep it up for sharing us such informative and useful videos .

[@CommerceSpecialist]

You are welcome dear

[@sheemarajanpillai5466]

You are the best 👍😊

[@thehappypeople1762]

Thankyou so much for being veg practical.

[@Naveenkumar-qy5wy]

Thanks for your video

[@MrVenkatesh25]

Fantastic teaching of Traditional Cost and ABC method of costing to calculate Per Unit Cost. Tomorrow I have exam and it was of great help, sir. please keep doing the great job you have been doing and inspiring learners on your channel

[@CommerceSpecialist]

Good Luck my dear👍

[@alletanzuma7058]

Keep going. We want more of such staff

[@CommerceSpecialist]

Sure

[@christophercrawford1618]

Thank you so much! This was a great explanation!

[@CommerceSpecialist]

You are welcome dear

[@xoadya]

thanks a lot! it is very useful

[@user-zd2le4ly8f]

Thank you so much sir for this PRACTICAL AND AWESOMELY EXPLANATION ❤❤❤❤❤❤❤❤❤❤

[@CommerceSpecialist]

Ur welcome my dear🙏👍

[@pallabjyoti4581]

Sir you have beautifully explained each point.. My doubts got cleared.. Thankyou sir

[@CommerceSpecialist]

You are most welcome dear😊👍🙏

[@richardalornyo916]

You are such an amazing teacher!

[@CommerceSpecialist]

Thanks a lot dear👍🙏

[@HDKaush]

Thank You Sir❤

[@rikasahamed6276]

I'm happy to find you sir. It's mean a lot😍

[@CommerceSpecialist]

Thx dear

[@jaffarrizvi3447]

I downloaded almost all your lectures eagerly waiting for more productive lectures pls

[@CommerceSpecialist]

Sure dear

[@NadiaNadia-gz2fu]

amazing

[@lucrishagilbert1482]

So very well explained 👏

[@CommerceSpecialist]

Thanks👍🙏

[@JohnBassey]

Great ❤️🇳🇬

[@Juanjack18]

Thank you 🙏🏼

[@JoyAccounting]

Thank you so much. Enjoyed your video.

[@CommerceSpecialist]

Ur welcome dear

[@IamCraftizen]

Sir Your vdos is too helpful

[@CommerceSpecialist]

Thx dear👍🙏

[@chamfelix7072]

Amazing. Thank you

[@CommerceSpecialist]

Thx Cham

[@beatrixkanyangela2358]

Thank you very much sir… your teaching is very helpful 🇳🇦

[@CommerceSpecialist]

Ur welcome dear🙏👍

[@veenamanu8892]

Thank you sir

[@ruthsarah8258]

perfectly explained thank you

[@CommerceSpecialist]

Thanks Ruth

[@omarsaeed531]

Great explanation

[@CommerceSpecialist]

Thx Omar🙏👍

[@imranahmedmirza7045]

Nice explained the topic with easy style, please do correct the unit cost 9.18 instead of 8.18 under traditional costing. Can you guide which cost system should be applied in motor cycle manufacturing and assembly whether ABC or absorption cost system?

[@jaffarrizvi3447]

Bravo

[@user-mz6th2qt8j]

Thank you so much, you speak English clearly! Most of the time, it's mixed and with difficult accent to grasp.

[@CommerceSpecialist]

Thanks dear😊🙏👍

[@Lifeofsaali]

Thankyou sir💯♥️

[@CommerceSpecialist]

🙏👍

[@manisankarjana3617]

Thank You Very Much,Sir🤓🤓🤓

[@CommerceSpecialist]

Thx buddy

[@sabbrina78]

Thank you

[@CommerceSpecialist]

👍😊

[@jonjrosen]

Thank you! I have my final CPA exam Wednesday (BEC) and this explained a lot

[@CommerceSpecialist]

Good Luck

[@jonjrosen]

@@CommerceSpecialist they said BEC would be a lay-up but I am finding out that's not true 😂

[@RasanjanaTv]

When we divide cost base on activity (cost pool) can we consider administartion, selling and distribution and finance expenses also.

[@mansisemwal3306]

Valuable

[@arafatislam3056]

I'm watching from Bangladesh🇧🇩

[@CommerceSpecialist]

Thx, regards to all my students from Bangladesh

[@njabulomoyo1049]

Well explained thanks

[@CommerceSpecialist]

Thx Moyo

[@aftabahmad9071]

very impressive

[@CommerceSpecialist]

Thx dear

[@shahmafidhu5559]

Thankuu sir❤❤

[@CommerceSpecialist]

🙏👍

[@user-xp3dx8kd8x]

Wonderful 👏 Can you please represent it in a tabular form?

[@samyukthashekhar8207]

thabk you so much for this video it was really helpful. just had a question why wasn't the mat. handling divided by 3000

[@chalanasankalpa3066]

Thank you so much sir but if you can explain the effect to p&l with opening and closing stock❤

[@asifansarii600]

Just want to ask that different industry has different cost pool and cost drivers. I am always confused as to how will I recognise the cost drivers. Is there any specific way.

[@HiraNoor-my6qt]

Haven't words to say tnnx such an amazing tutor 🎉

[@CommerceSpecialist]

Dear Hira, thx a lot🙏

[@saravananpk1330]

Good day Total budgeted OH is 720K USD and Sum of all activities budget cost is 1440K. (400k, 90k, 800k, 100k, 50k). Kindly clarify my doubt Why there's gap.

[@cmaelaiyapallavan]

I love you

[@makeittrades5750]

Great lesson thank you so much! Is it true ABC would be more for internal managerial decision as where traditional method is the one required for reporting under U.S GAAP?

[@CommerceSpecialist]

Yes

[@thokoselemani2386]

Can you please post a video for through put accounting

[@mohammedrizlan-oh7zm]

Sir could you please explain difference between marginal costing and Throughput accounting

[@MaboshabaneLegodi]

I'm never failing this again

[@CommerceSpecialist]

Thx a lot, Good Luck🙏👍

[@mohammadzain8845]

is there another video on this channel, concerning multi products of same question

[@CommerceSpecialist]

No but handouts with solutions are available to patreons

[@nawabKhan-tv7vh]

​@@CommerceSpecialistsir in short what does traditional costing means

[@SNaz_29]

How ABC costing provide greater unit costs for low volume products than is reported by Absorption costing?

[@user-vo8dq9xx5g]

Thanks for you efforts But dear teacher how can i calculate profit for each product using traditional costing and ABC ?

[@CommerceSpecialist]

Same way, for cost per unit, take abc cost per unit, n for traditional, take cost per unit of traditional, other elements will be the same

[@yusufghadiali7100]

Sir, can you pls post a video on Marginal and Standard Costing

[@CommerceSpecialist]

Sure very soon

[@user-mt7jn1gk8y]

M/s Priya Industries is in the business of manufacturing and selling lubricants. There are 4 types of products. The information available about each: P1 P2 P3 P4 Total No. of units produced 1300 2000 1500 1200 6000 Labour Hours 250 350 200 200 1000 No. of units in 1 packet 2 5 3 3 13 Machine Hours 260 450 360 180 1250 The total cost incurred is as under: Total Costs Rs. Salaries and Wages 25,00,000.00 Supervisor Cost 75,000.00 Factory Overheads 10,00,000.00 Packaging costs 6,00,000.00 Total Costs 41,75,000.00 It is assumed that the supervisor spends time in proportion of no.of units produced. Calculate the cost of each unit of the products under: a) Traditional Costing b) ABC Costing

[@roshanrajapakse2533]

Sir Did you do WACC caculation

[@CommerceSpecialist]

Its coming soon dear

[@user-gl9bu3tw6w]

Thanks alot❤.Btw! off topic how did you got this fluent in speaking english as its apparent that it is not your first language?

[@CommerceSpecialist]

Thanks a lot my dear. Its cuz of my school😊👍

[@bala4967]

<a href="#" class="seekto" data-time="1001">16:41</a>

[@nowshadamin5748]

machine cost per unit would be $0.02 not $0.20, because of $80,000/80,000 HR= $1/Batch. if the machine budgeted amount $800,000 so how total overhead $720,000? Thanks sir, for your nice class

[@mohammedasfin6319]

Can you do job order costing and operation costing!!?

[@CommerceSpecialist]

Job order costing video is already uploaded

[@sapnapatel842]

Full material for us cma part 1 how to get.......from u sir??

[@CommerceSpecialist]

For that you need to register in my course😊

[@GG-xu4hd]

What is the cost driver for order handling??? I am doing exercise and it does not have production runs.

[@CommerceSpecialist]

It could me no. Of orders, or orders completed

[@GG-xu4hd]

@@CommerceSpecialist thank you

[@knagasaianirudh2041]

Sir please say me 🙏🏿 why u didn't activities cost in Absorption costing method please say this

[@CommerceSpecialist]

The video is there

[@shivkumarsingh2595]

hii sir this is shivkumar singh in some of question we have to calculate cpu but no direct labour or direct material cpu is not given instead of that annual output in units and total machine hours is given ... in that how ut should be done ...... please reply

[@CommerceSpecialist]

Can only comment if i see the question dear

[@shivkumarsingh2595]

Kkk sir

[@shivkumarsingh2595]

Just let me know where to send the question screenshot

[@CommerceSpecialist]

My email

[@Sischika]

I want to learn with you

[@CommerceSpecialist]

You are most welcome dear

[@RHAishwarya]

Sir, could you please post video on throughput costing. It'll be very useful please.

[@CommerceSpecialist]

Sure

[@muhammadjunaid272]

Hello Sir. How to enrol for Acca classes with you seperatly?

[@CommerceSpecialist]

Pls email me

[@patrickmungulube6134]

Cost per unit is supposed to be 9.18

[@mohammedrizlan-oh7zm]

Who's this gentleman,

[@CommerceSpecialist]

???

[@umrasabamir186]

you need to first fix your camra...video is blur.

[@CommerceSpecialist]

Pls guide me😊

[@issajunior5508]

Such an amazing and wonderful teacher he is. I love how eloquent and articulate he is. He is passionate and gifted. I hope he knows this. Sir i would like to let you know that you have such a positive impact on my life. You have touched so many lives through your teaching. I am an ACCA student and i watch most of your videos on different topics and I pray for you everyday. May Allah shower you with his endless blessings. I cant thank you enough. But i hope i will meet you one day to thank you in person. I will also highly appreciate if you can share your whatsapp contact if possible. So much ❤ from Kenya.

[@CommerceSpecialist]

Thanks a lot dear😍🙏👍