Activity Based Costing (with full-length example)

[@daveklaassen4272]

When you learn something in 23 minutes in stead of not understanding it in 4 hours of class time. You are the MvP! Legend.

[@sameeral-jurf8823]

You are truly a legend. what my professor does in 2 weeks you can sum up in less than 1 hour. I wish I was joking, you are the boss!

[@saudiprince6532]

My man

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😂😂😂

[@amarnijjar479]

the glazing is crazy

[@lazizr3411]

People do not value free stuff, but it is the most valuable thing in our lives! Thank you, sir!

[@longneckproductions7873]

A 23 minute video taught me more than my managerial accounting professor ever has in 2 hours and saved me an extra 1.5 hours of trying to discern what is important from the text book. If my professor talked for 23 minutes she might not even get close to teaching us about ABC. Thank you very muchly.

[@djjayjay680]

I think your teaching method of walking through an example from the get-go is second to none. You add tidbits while completing the calculations that explain the theory unlike most textbooks that frontload the theory before even stepping into an example. You sir, are a legend.

[@awaboz]

your explanation and delivery is second to none , your videos have saved my life . thank you

[@jiyoungyun7494]

I am a student majoring in accounting and all your videos are very helpful for revision. thank you very much

[@ruralbird2417]

oh boy

[@ruralbird2417]

u look sweet in bed u know

[@twixter0]

@@ruralbird2417 easy there cowboy

[@washambiswimp714]

God Bless the internet (and these youtubers) for helping me understand things for my classes

[@5Cinque512]

Teaching is very simple. If just, every professors and teachers were so detailed, everyone could learn something. Thank you man.!

[@joshuasturgell1800]

Edspira currently helping me with studying for my mid-term Managerial Accounting class.

[@connorcech7697]

these videos got me through college accounting courses, and now they are helping me actually understand my CPA study material.. good stuff

[@dylanhardy1093]

You have been helping me through all of my online accounting classes for the past year. Thank you so much!

[@ThePsychoGamerYT]

Thank you , such a life saver. Definitely was worth watching the full 23 minutes instead of watching a short 4 minute video.

[@tedgrove9412]

Best. channel. ever. Seriously, I'm taking cost accounting right now and this guy is a godsend

[@brianwong9953]

THIS VIDEO DESERVES MORE VIEW !!

[@morgannkomo6936]

Very helpful. What I didn't get in a 2hr class got clarified in a 30-minute presentation.....bravo, bravo

[@erobdethkult]

Much better than my MBA class! Thank you

[@Gravy_moat]

i cried yesterday trying to learn this, today i will not cry. flying through my homework now! just needed a different explanation thank you!

[@valeska973]

Hands down the best explanation for ABC! Thank you very much for simplifying this concept.

[@Edspira]

Glad it was helpful!

[@LemuelQuider]

Off all the accounting toturials here in youtube you are one that I can easily understand. Thank you!

[@sbee1682]

You explain everything beautifully. So easy to comprehend and follow along with your videos and demonstrations. Great. Thank you for sharing these.

[@rayereflections5336]

Thank goodness for you! Literally helped me with my homework I've been staring at for a week in 30 minutes

[@Edspira]

Glad I could help!

[@letmusiclivee]

This helped so much !!! I have a talk with my teacher for a retake tomorrow and this helped me understand how to explain it. You rock!

[@Edspira]

Glad to hear you found the video helpful!

[@RangerXXT]

your videos are so much better than what my school gives, thank you a ton

[@prashantborda1992]

I am pursing CPA in Canada. For Core 2 module, this is life saving. I have an exam after a week, was totally lost but then i came across this KZbin channel. Each video is pure gold. I wish Univ professors take sometime and what this videos and learn how to teach.I feel like spending those thousands of $$ in Univ was total waste. This is real education.

[@Edspira]

Prashant, Comments like these give me the motivation to keep making more videos. Thanks so much! I'm working on getting all the KZbin videos up on my website: www.Edspira.com. Managerial accounting will be posted within the week. Good luck on the CPA exam!

[@chriskirby111]

Same here. It is a waste. But we have to do it because the piece of paper shows employers we can show up in one place for 4 years and jump through a bunch of hoops.

[@PercocetsMollyPercocets]

hey i need to talk to you regarding CPA canada and the job market opportunities for people after having achieved this degree. May i have any social media link to have a chat with you? Thanks. In need of your help. Dhrubo

[@cooldudewalton]

Thank you! You made this so much simpler than it was in my workshop. Perfect video.

[@shadowhalk225]

You have literally just saved my life. Thank you

[@jessicakalbfleisch9245]

I am so grateful for these videos! Incredibly helpful. You are an awesome teacher.

[@Edspira]

Thank you for the kind words!

[@cookingforfools8691]

Thanks for the easy to follow instructional video. The only thing that I found a little confusing was that you set up a separate cost bucket for assembly. It seems like that would fall under a direct labor cost. I've worked for three different manufacturing companies, and they all used the divide-overhead-costs-by-total-labor-hours method. ABC makes much more sense to me.

[@BeachBunnyGaming]

Still enjoying these videos in 2021

[@Edspira]

More to come!

[@BoityBillion]

Very easy to understand. Perfect for quick revision

[@Edspira]

Thank you!

[@xochitlfernandez2337]

This was a great way for me to learn this subject and have better understanding.

[@Edspira]

Thank you!

[@tarane409]

I am taking enhanced engineering betc this helped so much with understanding my assignment

[@jimmymoody9595]

Cannot thank you enough. I was stuck on this for about 2 months due to giving up when I didn't understand 🤦🏻‍♂️. Blessed to have found this channel 👌🏼

[@gnydell]

Now that I watched this video, I'm wondering why my professor took two weeks to explain what you did in 25 minutes. Though I will say that I watch this video at 1.5x speed (just because I can follow it when it's faster, not because you talk slowly), so even less time to comprehend the basis of this subject. Thank you!

[@waqasahmad6111]

Your excellency I am very much satisfied with your method of teaching. Your way of teaching is up to the mark . Stay blessed sir Thanks from Pakistan

[@Edspira]

Thank you! Best wishes to you and your family 😀

[@rizwanalikhan6604]

Sir I salute you you’ve made my day easy

[@neilmansilla4843]

learned ABC system in 23 minutes compared to my prof damnnnnn

[@montyberente5996]

i love you man, simple and well structured explanation

[@Edspira]

Thank you!

[@genihabtu5066]

I like the simplicty of example and with slow flowing voice tnx

[@fvandongen]

Watched like 3 video's. Thanks a lot! It helped me understand.

[@Samantha-ji7iw]

I am so thankful to you and this channel! I can not thank you enough! 🙏

[@mariabrown4664]

Love love love your explanations, Cannot explain how thankful I am.

[@yihinli8278]

Thank you Sir, your explanation and examples are very logical and easy to understand, you just made accounting simple. I got a lot of help from you when I was a university student and now I am working as an auditor and preparing for my CPA exams, I still refer to your videos for recap. Thanks a lot.

[@pjgdba306]

Assembly isn't an overhead, it is a direct cost. Good presentation - there is a lot of bla bla bla about ABC in textbooks when it is simply measuring things at greater granularity - "it's all in the details."

[@njabulontsakonkuna7403]

Thank you so much for these, May God bless you abundantly.You are making a real difference in peoples lives

[@markrogers6778]

Thank you James Woods

[@tolomeo96]

you are a legend much love from IE business school

[@cynthia217]

Wow actually understood how to do it after this video thanks

[@BestSolutionsAccounting]

I really appreciate the sheer amount of effort you put into these videos! You are an amazing person for doing this!

[@Edspira]

Thank you for such kind words! I appreciate your support :)

[@Jayofteror]

He is better than my professor. :)

[@jomariecrisixmuyco4870]

Thanks for the explanation. It was very clear

[@kimberlysiosi3371]

Thank you so much for this video. It really helps understand this topic and More simpler than my Accounting for management lectures explaination

[@东方不败-e9e]

You are a great teacher. Thank you for your teaching. However, in this case I don't understand how come you combined the assembly of hiking pack and tent together. Do you mean one unit of hiking pack assembly is the same as one unit of tent assembly? Aren't they totally separate assembly processes? Thank you. Looking forward to hearing from you or someone else who can answer. Thanks.

[@divya7514]

very well explained...thank you

[@Edspira]

no problem 😀

[@september7013]

You made that make so much sense. Thank you.

[@Edspira]

No problem!

[@ttig4044]

You could've went into to product cost per unit and all that other Jazz but for the content covered, its a good video.

[@aish_30]

Thanks, it's very helpful for me as I'm doing chartered accountancy. Waiting for more contents😃

[@acc.amermousa6803]

I would like to thank you for your support

[@Edspira]

No problem my friend!

[@kobrian6752]

This saves my mid-term test! Thanks a lot!

[@karensinian4701]

Thanks so much, I spent a week to check the book but I have no idea how can understand it, thanks again

[@linh918]

Very useful. Thank you 😊

[@luanpersini]

One thing that is missing is, each product can have its own cost per unit, for example: You want to pack 10x Notebooks and 10x 50" TV's to distribuition. The notebooks will use way less materials (like plastic) and Labour time, so, for example, we would have R$ 0,10 per unit of Notebooks to pack and R$ 0,25 per unit to pack 50" TV's. Just a hint so people can look deeper into the system.

[@cagonima]

You have shaped my University career, thank you!

[@Edspira]

I'm glad these videos have helped you. Best of luck to you in your future endeavors!

[@tttttttr-uv1ui]

Thanks man , u are the best

[@Dapuf_Puffd]

Very helpful as always thanks

[@lucasperez9800]

very good explanation thank you !!!

[@nightthemare4742]

Thanks a lot. You videos help a lot.

[@mez6809]

Thanks for this. A great refresher. One question I have is what would happen if 1 order had multiple products? Would you have to split the order into decimals?

[@morganclelland3153]

so on the income statement, will it be the same net operating income if you compare traditional vs abc?

[@Joseph-ey1rc]

Its really helpful. Thank you so much

[@Edspira]

No problem!

[@Kezayahh]

U deserve a sub

[@luda_c]

Excellent tutorial. Thank you very much!

[@nurillomukhammadkulov8745]

Really Nice Lecture ! Thank you

[@johannesvorfeld695]

Good job man

[@tadiwaduncan9637]

this is very helpful

[@Edspira]

Great!

[@leratorambau9432]

YOUR VIDEO'S ARE AMAZING

[@Edspira]

Thanks Lerato!

[@pritamkumarpaul1232]

if the actual orders or customer is lower than estimated how to allocate the overhead cost

[@ThePorschefan]

So it's basically the same as standard costing but with multiple overhead rates for each departments involved in the process. I guess the hard part is coming up with a useful cost driver & realistic estimated overhead rate

[@sbu6thengineering]

It is 'others' that I am interested in. Let say I know the sales revenue of the products. I want to use ABC to work out the profit margin. I read several articles that they work out the profit margin using cost per unit. So, in your example, should add your two cost totals and sum it with the 'others', then divide by the total number of units to get the cost per unit?

[@sbu6thengineering]

Is it Cost per unit = (507500+342500+150000)/(250000x2)=$2 per unit?

[@sbu6thengineering]

That's just simply overhead divide by total units?! I thought I understood it, but I am now more confused.

[@maureensticco4592]

Awesome video! Thank you

[@perrybarnacle]

Good overview of the method. In practice, ABC costing is a great way to arrive at a potentially bad managerial decision. Allocating indirect costs to arbitrary cost drivers is ineffective. Strategic Cost Transformation by Reginald Tomas Lee outlines a more sensible approach.

[@alexthegreat445]

Great video.. helped a lot .. thanks!

[@Edspira]

No problem!

[@rickjacoby4542]

Why are we putting SG&A costs into the equation? Since when would customer support be considered a manufacturing cost? Wouldn't that be a period cost? Is this costing not used for inventory evaluation?

[@jessecorbett3751]

Thank you so much! I liked and subbed!

[@sanikakhatu5894]

You are amazing ❤

[@fasya6910]

Thank god theres English one here , I’ve been searching and all I can find are Hindi languange , and their accent godd 😭

[@asfahsabrie6207]

😂😂😂😂🤭✋🤭✋✋

[@yanadashevski8243]

Thank you SO MUCH for clarifying the bases for me.

[@mercychavula7139]

Thank you sir.

[@exoticculture9363]

great man!

[@Edspira]

This made me smile. Thanks!

[@wamelesang1076]

awesome, thank you very much for the lecture!

[@bokangmodiane6348]

Well understood. 🙌

[@tg-us3hw]

may god bless you

[@davidrovere2899]

I really like your videos, I find them very helpful. I just wonder why you included SGA into the 1M OH cost. I assume by the exemple that you are treating product costing therefore you're allocating manufacturing OH. SGA wouldn't apply into the manufacturing OH concept. Is this some king of general overhead? Or, is the activity based costing a completely separate method to evaluate manufacturing cost from product costing? Again, thanks for your videos, I hope you are finishing your PHD soon and Education Unlocked goes mainstream.

[@abdullahalbudiry8275]

I have a Question What is the program which is you use to write and present in you amazing videos?

[@yawlexgh4492]

Thank you

[@mishikhan1349]

Please make vedio on throughput accounting as well

[@ThePsychoGamerYT]

Came clutch right before a exam

[@ArjunGurungTheArjun]

Totally worth subscribing!!!

[@ChuyChewy]

Dud, literally this I’m currently in is lame, my professor just reads off the bored, I don’t learn anything, n it sucks, thank you!