1. Profile photo of Saba says

    Dear John,

    Could you be so kind to clarify from where you took figures mentioned below during ABC Calculation

    1) Set up cost calculation – 25 ( A-10; B-13;C 2)
    2) Receiving – 22 ( A-10;B-10;C-2)
    3) Dispatch – 50

    Thank you in advance

    • Profile photo of John Moffat says

      For part (a) of the example (which is what this lecture covers) cost driver and cost pool are not relevant because it is traditional absorption costing, not activity based costing.

      It is part (b) which is the next lecture, where they are relevant. The question specifically tells you what the cost drivers are. It does not mention the word ‘cost pool’ and most exam questions do not mention the word either. However, the cost pools are the totals for each of the areas where overheads are incurred (which again is made clear in the example). When you watch the next lecture it should be clear.

  2. avatar says

    hello Mr Moffat i am really grateful for these lectures i wrote my F5 and failed in june and i was so disappointed but listening to your lectures has really helped and i know i will make it in dec.Thank you Sir.

  3. Profile photo of Amir says

    Thanks a lot Mr Moffat as i have a gap between my studies for almost 1 year and started a job i was finding a good tutor which can clearify the concept and the good thing for me is that i dont have to travel to institutes and attend the lectures and paying huge sum. This is realy helpful and educating. I hope to clear my exams this december.

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