ACCA F5 Activity based costing Example 1 part 2

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View all free ACCA F5 lectures >> This lecture is based on OpenTuition F5 course notes

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  1. Avatar of Monic Monic says:
    May 11, 2013 at 4:33 am

    Well done Lecturer, good source especially for people like me who find it difficult to get Tuition providers nearby.

  2. Avatar of modupeoluwa modupeoluwa says:
    April 12, 2013 at 7:03 pm

    greeat lecture, God bless.

  3. Avatar of leanna22 leanna22 says:
    March 29, 2013 at 6:23 pm

    Thank You… Great lecture…..

  4. Avatar of tauraiversatile tauraiversatile says:
    March 21, 2013 at 1:18 pm

    Thank you my lecturer….Hopefully I will pass this paper in June.

  5. Avatar of bloodblaster bloodblaster says:
    March 11, 2013 at 9:24 pm

    nice

  6. Avatar of judesuresh judesuresh says:
    March 4, 2013 at 4:35 pm

    Thanks, very helpful & great service.
    keep it up

  7. Avatar of maggieeeeeeeee maggieeeeeeeee says:
    December 24, 2012 at 12:13 am

    very helpful, thanksssssssssssssssss!

  8. Avatar of faith5 faith5 says:
    November 23, 2012 at 4:13 am

    Your teaching is fantastic,pls am not clear on the ABC on machine hour. What criterial is used in getting 2 each used for the cost driver instead of the 2,12 and 2 that was given as the
    machine hr/u’

  9. Avatar of jehanhasan jehanhasan says:
    October 23, 2012 at 1:00 pm

    i got much more things in your lecture which i did not get in class, thanks a lot, so much happy with your lecture.

  10. Avatar of bakarsaid bakarsaid says:
    October 21, 2012 at 3:06 pm

    useful

  11. Avatar of emi333 emi333 says:
    October 1, 2012 at 1:31 pm

    Thanks a lot its helpful :)

  12. Avatar of isejonas isejonas says:
    August 23, 2012 at 4:28 pm

    please in an exams setting can I show all my workings?

  13. Avatar of andreasmacfarlane andreasmacfarlane says:
    July 16, 2012 at 1:16 pm

    Hi John,
    As ever, great lecture.

    Quick question: in both cases 190k were absorbed, but the costs are wildly different.
    If I add up the overheads per unit, example a) gives me 20.68+17.84+17.84 = $56.36, and example b) gives me 18.90+18.79+23.63 = $61.32.
    That then also means that the profits don’t balance. I would expect the profits per unit to be different, but that when added up they’d be the same. After all, we’ve spent the same amount, and we’ve charged the same amount (in this case there hasn’t been any over/under absorption to confuse matters).

    Thank you
    Andreas

    • Avatar of johnmoffat johnmoffat says:
      July 16, 2012 at 6:39 pm

      @andreasmacfarlane, You cannot add them up per unit. But if you multiply by the number of units produced, and then add up the totals, the total overheads will be the same in both cases :-)

      • Avatar of andreasmacfarlane andreasmacfarlane says:
        July 17, 2012 at 2:25 pm

        @johnmoffat, Thanks John.
        I had done that to confirm that it comes back to 190k, but still can’t work out why it then is different per unit.
        It’s still the same value of direct cost, and the same value of overheads spread over the same number of units. What’s causing the difference?

        Surely if you’re after bigger profits you’d then just use the first approach.
        Or is it because of rounding errors along the way that the differences are more accentuated at the individual unit level than at the total inventory level?

        Thank you

        • Avatar of johnmoffat johnmoffat says:
          July 17, 2012 at 5:34 pm

          @andreasmacfarlane, A few things…..

          Firstly, there is no logic in adding the unit costs together. Suppose apples cost $2 each and oranges cost $3 each. The total is $5 for one of each, but that means nothing to anyone – if you buy 100 apples and 1 orange, then $5 is completely irrelevant :)

          Secondly, we can charge the overheads between the products in any way we want – for example, we could simply divide the total overheads by the total number of units produced – there is no ‘law’. What makes ABC such a good idea is that we are trying to charge them according to how much of each overhead each product is using.

          Thirdly, the total profit of the business will be the same however we charge the overheads. The total overhead cost in the income statement will be 190,000 whatever happens and so the profit will not be affected. The reason we want to charge the overheads to products in a ‘fair’ way is because if we know how much it costs to make one unit we can then decide how much to charge. If one product costs a lot to make then we obviously want to charge a high price. (And of course changing the selling price will effect the profit)

  14. Avatar of natasya natasya says:
    June 5, 2012 at 8:14 pm

    Very helpful, thanks!

  15. Avatar of eitartun eitartun says:
    June 5, 2012 at 3:01 pm

    Thanks ,

  16. Avatar of kakarobby22 kakarobby22 says:
    June 5, 2012 at 8:27 am

    kindly help please, i am unable to fully load the video and then disconnect to Internet and view the entire lecture.there’s no telephone line installation and so i used a usb emtel internet key….please help thank you

  17. Avatar of adel mokbel adel mokbel says:
    June 1, 2012 at 9:59 pm

    thanks

  18. Avatar of muraliesms muraliesms says:
    April 22, 2012 at 9:22 am

    very good

  19. Avatar of tsovik tsovik says:
    April 21, 2012 at 8:03 pm

    Really nice, i would even say interactive. Makes you think, good pace, clear english. Like it very much

  20. Avatar of osaheniosahon osaheniosahon says:
    March 12, 2012 at 4:00 pm

    this is beautiful,am so happy anout this

  21. Avatar of himaambo himaambo says:
    March 12, 2012 at 1:16 pm

    enjoyed the presentation well done

  22. Avatar of briankanthonga briankanthonga says:
    March 5, 2012 at 11:40 am

    its wonderful to listen to these lectures.keep it up

  23. Avatar of ekainujohn ekainujohn says:
    February 20, 2012 at 2:55 pm

    Im glad im here…thanks a million open tuition

  24. Avatar of nidhisharma nidhisharma says:
    February 4, 2012 at 11:26 pm

    Awesome………………………………….

  25. Avatar of rssd rssd says:
    February 1, 2012 at 7:46 pm

    Thanks a lot. The lecture was really good.

  26. Avatar of hossain123 hossain123 says:
    February 1, 2012 at 1:06 am

    its fantastic lecture to do the perfect study and i would like to know that is it possible to provide that kind of video lecture in other subject .for example f1

  27. Avatar of rafotey1806 rafotey1806 says:
    January 23, 2012 at 3:05 pm

    nice 1

  28. Avatar of sabarashid sabarashid says:
    January 18, 2012 at 11:42 am

    thank u so much for such a wonderful lecture
    kindly plz tell me the avg marks this example covers in exams

  29. Avatar of reshmadeel reshmadeel says:
    November 21, 2011 at 7:23 am

    great lecture

  30. Avatar of divine2010 divine2010 says:
    November 19, 2011 at 2:55 pm

    A job well done. Thanks

  31. Avatar of messihassan messihassan says:
    September 26, 2011 at 8:05 am

    Great Job….very very well done….

  32. Avatar of foziayn foziayn says:
    September 13, 2011 at 7:55 pm

    I am loving it!!!!

  33. Avatar of whizz whizz says:
    September 8, 2011 at 10:23 pm

    Great lecture. well explained. Really grateful for the useful little exam tips the lecturer gives.

  34. Avatar of anarchy1 anarchy1 says:
    September 7, 2011 at 8:45 pm

    Great lecture, clearly explained and easy to listen to

  35. Avatar of makhdoom5 makhdoom5 says:
    June 22, 2011 at 7:23 pm

    whats problem with them why bot stand at one place do they have stomach problem loll
    they get away from microphone and cause very diviation

  36. Avatar of josuns josuns says:
    June 9, 2011 at 2:54 pm

    Great job.God bless

  37. Avatar of malaika123 malaika123 says:
    May 24, 2011 at 12:04 pm

    awesome….

  38. Avatar of tobyexcel tobyexcel says:
    May 2, 2011 at 9:08 am

    i love this, one of the best i have seen in recent times. is there a way i can get a video copy.
    thank you

  39. Avatar of elkanemodel elkanemodel says:
    April 20, 2011 at 2:14 pm

    i must say that i realy like this lecture. perfect job done by OpenTuition. Thanks a lot.

  40. Avatar of shimmer shimmer says:
    April 16, 2011 at 11:59 am

    Yeah. He makes a lot of sense. Great job!

  41. Avatar of nitinbalwani nitinbalwani says:
    April 12, 2011 at 6:23 pm

    Best method for teaching. Awesome. Its like student is sitting in classroom and also the tutor is very very good.giving good examples in between letures.
    Thank you open tuition

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