ACCA F5 Activity based costing Advantages of and problems with activity based costing

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  1. Please Sir I need your help……
    Thank you for wonderful lecture…. I try to solve ABC examples. I found in this year pilot paper from ACCA web site, Question-1 for ABC costing and that question is for 25 marks. Only four question in pilot paper. I have idea, in exam 5 question and each for 20 marks. Please Sir can you tell me is there any changes in exam format? or This changes for pilot paper only.
    Thanks

  2. Where is the like button for lecture?

  3. Sir, I am not sure, maybe confusing something, but i think I have also seen overheads, which it is difficult to find driver for, are considered in mark-up rather absorbing with traditional method. I suppose it is called modern (advance) costing techniques. Please, correct me if i am wrong.

    • What usually happens is that ABC is used where possible, but that other overheads (for which it is difficult to find a driver for) are absorbed on a traditional basis (e.g. on a labour hour or machine hour basis).

      • Thank you for answer. One more question:
        I suppose you use here example of only production overheads. As i know ABC system involves non-manufacturing cost as well which is not the case in traditional costing. What would be the situation if there was non-production overheads?
        thanks…

        • ABC as it was developed does not involve non-manufacturing costs – it is concerned with getting the cost of production.
          There may be circumstances where you could use an ABC approach to some non-manufacturing costs, but this was not the original purpose (and is not relevant for F5).

          • Thank you for answer. the chapter by Maria Major edited by Hopper, Northcott, Scapens in ‘Issues in Management Accounting’ (2007) says (page 161):
            In traditional costing systems only manufacturing are normally allocated to cost objects, whereas manufacturing and non-manufacturing overheads are assigned in ABC systems (Innes and Mitchell, 1993, 1998). The inclusion of non-production overheads in ABC is particularly useful for analyzing product profitability by distribution channel, customer or market segment.
            Is it that case you wrote?

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  8. Great work !! The way you explain things is amazing.
    Thank you very much for helping us.

  9. Lecture stops midway! Why??? :(

  10. Thumbs up! :)

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  15. i really enjoyed the lecture but i ll lyk to ask a question,
    can they ask in the examination to use another basis aside labour hours to calculate the cost per unit as its been asked in example 1a

  16. Some of the lecturers are sooooo slow..it makes it nearly inefficient to watch videos as primary learning tool.

  17. Hey.
    Can you help me with this one. I’m a bit confused.
    The cost driver for quality inspection is likely to be batch size. True or False?

  18. I can see the lecturer speaking but i can’t hear him. Moreover,each time i click on the screen to make him look bigger, its always going on pause mode. Helppp plssss

  19. Good one….. Can i pass if i use open tuition only or i still need to get the BTT material

    • @dziwandi, I don’t know what BTT is :-)
      The OpenTuition notes contain enough to pass the exam, but the more you study the better. In particular you must practice as many questions as you can. Best is to buy a Revision/Exam kit. At the very least you must practice all the old ACCA exam questions that you can download from the ACCA website.

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  26. thank you :)

  27. I enjoyed the lecture. Thank you John

  28. extremely helpful

  29. This is fantastic, and is more than enough for ABC. Good luck to us all

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  38. very good,It gives me a clearer understanding of ABC.Thank you.

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  40. This is very helpful. Thanks a lot

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