Marginal vs Absorption Costing | Cost per unit | Profit / Loss | CMA | ACCA | Commerce Specialist |

[@lydiaeric742]

I don't know why you make it look soooooo easy, its either you are gifted or highly gifted, maybe both of them☺. You are a life saver and God bless you.

[@Kamwanganatasha]

❤

[@sheilachelangat8583]

Highly gifted

[@tintamichelo910]

First explanation I've understood in 3 months of lessons 😅❤. Thank you sir

[@CommerceSpecialist]

🙏😊👍

[@Sainath-b4g]

Sir,what should we do if there are fixed and variable admin and selling and distribution over heads

[@josephmanu5664]

Truly, your explanation is attached to the real world situation by converting theory to practicality...GOD BLESS U.

[@CommerceSpecialist]

You are welcome dear.

[@MagentaPixel]

Hello sir, i have got fear about to sit the exam to answer this costing part. but after looking your tutor recording, i have totally satisfied to face the exam in one and only night before the exam day. Actually i dont know how you can easily explain all of the session in simply and perfectly....? Thanks a lot..

[@CommerceSpecialist]

@@MagentaPixel thanks a lot dear. Behind all this is 28 years of experience and prayers and support of my students and supporters like you. 🙏👍

[@jaydaka7886]

Where have you been whole my life? I have understood this lecture very well thank you very much. Oh plus you've gained a new subscriber ❤

[@CommerceSpecialist]

Thanls dear Jay

[@yohasethio7669]

Thank you for the lecture. You made the topic interesting and easy to understand.

[@CommerceSpecialist]

You are welcome. Thx

[@euniceike1165]

I love the way you make your teaching seamless, understandable and well presented.May the almighty God grant you good health to continue to serve us

[@CommerceSpecialist]

Thanks a lot dear, sure.😊🙏👍

[@Amrat03]

Best explanation of AC & MC in least time. I could surely say this is the best video of the topic on youtube. Even my paid coaching teachers aren't able to explain in this seamless & easy manner.

[@CommerceSpecialist]

Thanks my dear😊🙏👍

[@josephbabs8649]

Sir,what happens if there are both opening stock and closing stock in the reconciliation of the profit between the two approaches.You less the difference in closing stock,what do you do with opening stock?

[@CommerceSpecialist]

@@josephbabs8649 use ur brains boy😊

[@natimelese3860]

so smart but poor handwriting please keep it up but improve your handwriting.

[@CommerceSpecialist]

Thanks😂👍

[@arafatislam3056]

Thanks you Sir, I'm from Bangladesh

[@CommerceSpecialist]

Ur welcome dear. Love to all my students n supporters from the great Bangladesh.

[@matirasabanda7184]

Thank you very much

[@BoldwinJavero]

WHAT WILL BE THE OPENING STOCK AND CLOSING STOCK FOR THE QUESTION BELOW? PLEASE HELP Lubasi Ltd makes and sells product A. Below is the cost card for each unit of product A. K Direct materials 24.00 Direct labour 15.00 Variable production overhead 6.00 Fixed production overhead 15.00 Total cost 60.00 Profit 45.00 Selling price 105.00 The fixed production overhead figure has been calculated on the basis of a budgeted normal output of 24,000 units per annum. Fixed sales and administration costs are estimated at K72,000 per annum. You may assume that all budgeted fixed expenses are incurred evenly over the year. The sales price is K105.00 and the actual number of units produced and sold was as follows: January February March Production units 2,000 2,500. 2,200 Sales units 2,500 2,500. 2,000 Required: (a) Prepare a profit statement for each of the months January, February and March using absorption costing.

[@alfadecosta5767]

Well explained am taking CPA

[@vyshnavsurendran9183]

Sir if there is opening stock how it will be claculated

[@CommerceSpecialist]

Give opposite treatment as compared to closing stock

[@JoeGomez-k7z]

Great man with high quality techniques .. GOD BLESS YOU where and how to join group please ? If there is a link you please send it . Thank you honorable ❤.

[@demaslumba5855]

Thank you so much for your easy and clear way of communicating. I have been immensely helped, Watching from Lusaka, Zambia!

[@aliashraf8658]

Your lecture is so easy, thank you very much sir

[@CommerceSpecialist]

@@aliashraf8658 ur welcome dear🙏👍

[@saiduwurie]

My question is how the over and under absorption is calculated

[@gurjotkaur1999]

Under absorbed = (capacity of production - units produced) × Fixed production overhead cost Over absorbed = (units produced - capacity of production) × Fixed production overhead cost

[@CommerceSpecialist]

Watch my video on the same topic pls

[@Nethrapapa]

Sir, how to calculate Sales in my situation , Because we sell windows For Example Sales person 1 - Selling 1 window in 300 riyal and Sales person 2 selling in 380 riyal it depends up the closing the deals with client how to determine this, we are selling in “n” value please help me sir.

[@shozabali7287]

sir we always add under absorbed overheads, but u subtracting them?

[@thomsonfinny3951]

I was thinking the same... Underabsorbed will be - Add Overabsorbed will be - Less

[@PASSIBOI]

Sir, you made my day with this fabulous session, intrestingly may you are only who have covered this topic

[@lucrishadavids3900]

Very well explained am doing ACCA and this topic is difficult for me to understand but you're explanation is clear please send more details on this topic

[@CommerceSpecialist]

Sure

[@sandarudilhara712]

​@@CommerceSpecialistSir, please share cost control lesson

[@Rose-ol8tu]

Hi sir, why do we have to calculate stock and all that under variable cogs ? 8:58

[@cmaelaiyapallavan]

I love you

[@renatasantos7369]

You are such a great teacher. Thank you so much for sharing it with us.

[@TengkuMaranti]

I owe you a BIG thanks ..I totally understand this AC MC thanks to you! 🙏🏻

[@TengkuMaranti]

Adding the comment ... I keep your video 'handy' during my exam prep! And it getting easier each time I watched your video! :)

[@kasunianjalika4236]

Sir i have a question. If there any under absorbtion should we adding to the gross profit. Over absorbtion should less from the profit i think. Can you explain it?

[@CommerceSpecialist]

Over absorption is added to profit n underabsorption is subtracted

[@maghfira5175]

You made it so easy I had marginal profit in my ma2 exam I didn't know how to solve it after so many practice it was because my concepts were not clear. I passed the exam anyways but want to improve my mistakes and You've helped me alot Thank you sir Love and support from pakistan 🇵🇰

[@CommerceSpecialist]

Thanks a lot dear🙏👍

[@ElenaTataru-v3k]

Hi! I don't have in my exercise capacity production, i have only production which is 45,000. how can i calculate if is under or over absorbed? Thanks.

[@CommerceSpecialist]

Take production as capacity

[@partheepannallamuthu5789]

Great sir, I used your video and cleared all doubts.

[@-KUSHMAV]

Thank you sir for gave clear knowledge about marginal and absorption cost. Thank you very much😌

[@CommerceSpecialist]

You are welcome dear🙏👍

[@kianatappin2504]

Love this explanation, it’s gonna help me so much. Can I have some help with step down apportionment and reciprocal apportionment?

[@CommerceSpecialist]

Thanks dear, there is a video on all three methods of apportionment, pls check video on overheads👍

[@JihaanAbdiweli]

Thank you soo much sir. Your explanation is truly genuine, OMG god bless you ya ♥🎇💎

[@CommerceSpecialist]

Thanks a lot my dear😊🙏👍

[@rahenoor2239]

What causes marginal profit high as compare to absorption profit Fixed overheads over absorbed ( true or false) Sir kia yeh true hogi?

[@CommerceSpecialist]

If selling price is high and vc is less, then marginal costing will gv high profit since fixed cost remains constant

[@imranahmedmirza7045]

How are you sir, your teaching style is very impressive. I remembered you teached me in MBA program at PIMSAT in year 2009......

[@CommerceSpecialist]

Thats good memory dear👍

[@prince-uba]

Wow 😱 So simplified. Thanks for the lecture How can I get the lecture with Multiple Limiting factors?

[@CommerceSpecialist]

Dear that is covered in Linear Programming

[@rakeshsha5164]

I am trying to understand this topic from 3 hour but i couldn't but after seeing your video i become able to solve all problems related to this topic. Thanks sir . Please make more videos related to ACCA.

[@CommerceSpecialist]

@@rakeshsha5164 ur welcome dear, good luck for your ACCA journey

[@rakeshsha5164]

@@CommerceSpecialist sir please make more video related to ACAC

[@gurjotkaur1999]

Sir can you please make video on total quality management and throughput costing concept

[@CommerceSpecialist]

Sure

[@hassansesay2604]

If you are given only variable cost but you are not given variable cost per unit. How to determine it

[@CommerceSpecialist]

Divide by production in units

[@Waytoislam07]

Sir if there is no capacity how we can fint fixed production overhead per unit

[@CommerceSpecialist]

Ues production as capacity

[@jessekuatsinu894]

You're awesome

[@CommerceSpecialist]

Thx dear

[@ogarpatrick2228]

Always fulfilling Thank you very much sir. Please Can you help make or post lectures on throughput accounting if it's available already Please Thank you sir.

[@gosiaq87]

GREAT ! You saved my live ! thanks

[@CommerceSpecialist]

Ur welcome dear🙏👍

[@MohamedKalokoh-n2m]

If you have two months: Jan. Feb. Production. 6000. 5000 Sales. 4000. 6000. How to calculate the closing inventory in both

[@SyedJawwadUlHassanAbidi]

(6000 - 4000) 2000 units will become opening inventory for February

[@mograhmaluwaya8863]

Why are you considering fixed cost on marginal cost?

[@CommerceSpecialist]

Thats deducted to calculate profit, but fixed cost is not included to calculate cost per unit

[@khyal16]

Well explained Sir. Really helpful

[@theophiluslightlarbie6557]

Good explanation sir ❤ One question please If the production units are given for only one month or 1 quarter ,how is the over /under absorption calculated, when the activity units is on annual basis Also if an opening balance is given,does that mean we add the amount to the production cost before calculating the closing stock? Will be happy for a reply sir

[@yawobnissar1139]

Thank you sir you have really helped me but i have a question what do you do if you have two fixed production overheads in the question.

[@xolisagongota4456]

Good day Sir, should I have a veriable selling and administration cost do I add the units of veriable selling and administration to calcute for production cost? & Should I have fixed selling and administration do I also add it in the income statement under less fixed cost?

[@CommerceSpecialist]

Variable selling n admin costs are not part of cost per unit. All fixed costs are subtracted after Contribution Margin

[@xolisagongota4456]

@@CommerceSpecialist Thank you Sir, though the practical paper is still difficult for me to comprehend and soon I am writing is there no way I can contact you whether through email or phone so you can assist me please? I've been stuck on this. I will send you an attachment.

[@saadi5484]

Sir agar hamare pass opening stock mai kuch balance hai mean 1000 is opn /stk so usko total per unit se multiply karengay start mai Marginal & absorption costing mai both ... Plssss

[@preciousphuluso1186]

Thank you so much 🙏

[@MansonMoonga]

I need the full resource materials if possible...how do I access them...thank you

[@CommerceSpecialist]

Which materials dear

[@MansonMoonga]

@@CommerceSpecialist .a soft copy of what you are using particularly questions and answers

[@madelights3344]

Sir please make more Videos on ACCA F2 PAPER

[@CommerceSpecialist]

There are many dear, just write the name of topic with Commerce Specialist

[@kearabetsoepakela6544]

Your explantion made a huge diffrence in my performamce....thank you so much

[@CommerceSpecialist]

Ur welcome dear👍🙏

[@varunupadhyay8150]

Sir your explanation is truly good I already join cma classes, but I have to see your lects

[@adepuvasundhara0828]

Excellent explanation sir

[@rafique877]

Well explained sir 💐

[@hiralgohel5108]

Mind blowing explanation sir 😇✨👍

[@CommerceSpecialist]

@@hiralgohel5108 thanks dear🙏👍

[@BoldwinJavero]

THIS IS GREAT🙏🙏

[@ajithkumarrj8545]

Sir if opening stock is there we should add write but u are less

[@mohamed_Riham]

I'm from ca sri lanka sir..it was really helpful for my costing part..I have learnt many subtleties from this lesson..pls upload continuoesly regarding costing topics sir..❤Thank you so so much ..

[@CommerceSpecialist]

Ur welcome dear, good luck in your studies.

[@chandajere9586]

Thank you so much,Well explained

[@mwildoit]

thank u sir.

[@oldsoul_49]

Great job 👍

[@dhrutigandhi6300]

It's a great resource for ACCA F5 students and your explanations with examples are quite easy to understand. Sir can you create a playlist for F5. Thank you sir for such amazing explanations.

[@CommerceSpecialist]

Sure

[@ibrahimomar4118]

Thank you teacher what a best explain to make

[@giftyabena1685]

Anytime I come to KZbin to watch videos on financial reporting or cost and management, it's always the commerce specialist because he is good and can explain things to my satisfaction. His teachings have helped me a lot ❤. God bless u

[@CommerceSpecialist]

Thanks a lot my dear😊🙏👍

[@MaboshabaneLegodi]

I love you all the way from South Africa

[@ArsalaAbid-jp9ty]

I can't believe how well he explained each and every single step. I saw alot of lectures on this topic on KZbin but this video lecture can't be compared woth other i would rate it 11 out of 10 . ❤

[@CommerceSpecialist]

Thanks a lot my dear😊🙏👍

[@mandlalubisi6626]

Thanks sir. I am not an accounting person but currently studying Management accounting and what you shared here shed some light. ❤

[@CommerceSpecialist]

Thx a lot dear🙏👍

[@josephnzunguli8491]

Thankyou very much (easy explanation, easy understanding) GOD BLESS

[@CommerceSpecialist]

🙏👍

[@RICKYBAJWA1]

very well explained sir, I am a BPP student but the way you explained this they could not. Thanks

[@CommerceSpecialist]

Thx dear

[@FranklinLolika]

I can't believe it so so easy thank you very much sir for the teaching may God continue to bless you and give you more strength for your grate job ❤❤❤❤

[@CommerceSpecialist]

You are welcome dear, thanks a lot🙏😊👍

[@laminsusso7053]

you are my best online lecturer so far and GOD be with you the only problem i have is process account, i would love to watch your lecture under process account

[@CommerceSpecialist]

There are two videos on process account already on my channel dear

[@kasunianjalika4236]

Sir if there are any variable selling n distribution cost and Administration cost how can we calculate them? Before contribution or after?

[@learnandearnfinance]

Selling and administration cost has nothing to do with marginal or absorption cost. These both method only differentiate in Production Over head cost (Fixed Production Over head cost and Variable Production Over head cost)

[@kapendatuhafeni9010]

You truly brilliant sir❤❤

[@CommerceSpecialist]

Thanks a lot dear🙏👍

[@younghendrix7175]

Hello sir in situations we're opening stock is given in units what do you do about it so you multiply it with the selling price or something else?

[@CommerceSpecialist]

Multiply by cost per unit

[@smritybhusal4491]

You explained it so well💜thank you sir❤

[@paawanijain5464]

👍👍👍

[@s.chambers4256]

Finally got it . Your explanation was very clear.

[@maryamnoor755]

Thank you so much Sir! You've explained it so well 😍

[@CommerceSpecialist]

Ur welcome Maryam👍🙏

[@muhammedsaddamsadham2245]

Excellent explanation sir

[@CommerceSpecialist]

Thx dear

[@hassanansari5515]

Very brilliantly explained Sir love from Pakistan

[@CommerceSpecialist]

Thx a lot dear👍🙏

[@motivationfordayz]

Just wow thank you so much for breaking down this topic

[@CommerceSpecialist]

🙏👍

[@Naveenkumar-qy5wy]

I pray for your health and good life , you solved all my query regarding this topic. Thank you for your lecture.

[@CommerceSpecialist]

Thanks a lot dear

[@koolraul27]

Very well explained

[@CommerceSpecialist]

Thanks a lot Rahul

[@alimadari2275]

What a great video 🫡🫡

[@HDKaush]

Thank You Sir ❤

[@CommerceSpecialist]

Ur welcome👍

[@ahmadalif2609]

We don't have to deduct income tax expenses to arrive at Net profit?

[@CommerceSpecialist]

Yes if given in question

[@abdulrahmanmahar7491]

Good explanation..

[@CommerceSpecialist]

Thx dear

[@safianufati7641]

You are the best

[@CommerceSpecialist]

Thx dear

[@bratzyicy]

god bless you

[@CommerceSpecialist]

Thanks a lot🙏👍

[@rahemamuhammad9944]

Well explained, thank you sir

[@CommerceSpecialist]

Ur welcome rahema😊👍

[@Muthu081982]

Thanks sir

[@krrhyssss945]

You gained a new subscriber ,very amazing teaching.💐

[@CommerceSpecialist]

🙏👍

[@rajkumartamang7795]

Very simple way to teaching..

[@CommerceSpecialist]

Thx dear

[@AhmedSaad-wq3be]

Really. Very helpful. Thanks a lot.

[@CommerceSpecialist]

Thanks Ahmed

[@sheemarajanpillai5466]

wow! the best explanation ever 🙏

[@CommerceSpecialist]

Thanks Sheema, u made my day👍🙏