Than you very much for the lecture I really understood it. My question is how do you do in questions that you are not given the Units produced and the Fixed selling costs.please help me cos I have an assignment that has that question.
@jkbhurtun, in absorption costing the cost per unit of product includes both variable and fixed thats y we have to calculate fixed cost per unit because when income statements are prepared cost of sales includes production cost which includes fixed cost per unit
@marrysiap, We do not recalculate the fixed cost per unit using actual figures – we keep to the budget figures. The reason is explained in the video, but is because usually management accountants produce profit statements monthly and do not keep changing the value of inventory just because some months we produce less and some months we produce more.
you have calculated budgeted profit but in notes it is written actual statement can you please explain it .and further more how to prepare actual profit statement under absorption and marginal costing please reply asap.
kabeerdurrani says
i can see video now sorry admin it was my fault
kabeerdurrani says
i cannot see video ……..
tauraiversatile says
That’s a good one. Simplified and vivid!
shyama123 says
Dear Admin,
I cannot see this video.plz help
lynda23 says
Than you very much for the lecture I really understood it. My question is how do you do in questions that you are not given the Units produced and the Fixed selling costs.please help me cos I have an assignment that has that question.
John Moffat says
@lynda23, It really depends on what other information you are given in the question.
Fari says
thanks for such a useful lessons
thaomit91 says
thank so much!
kina says
videos dont work today… ((
sibusiso says
awesome
jkbhurtun says
Since fixed cost does not vary with number of units produced what’s the use of calculating fixed cost per unit?..
yusraanis says
@jkbhurtun, in absorption costing the cost per unit of product includes both variable and fixed thats y we have to calculate fixed cost per unit because when income statements are prepared cost of sales includes production cost which includes fixed cost per unit
marrysiap says
@yusraanis, of cours we need to calculate Fx c p.u. but if production increase then Fx per unit falls. In my opinion it shoul be 20 000/11 000.
John Moffat says
@marrysiap, We do not recalculate the fixed cost per unit using actual figures – we keep to the budget figures. The reason is explained in the video, but is because usually management accountants produce profit statements monthly and do not keep changing the value of inventory just because some months we produce less and some months we produce more.
marrysiap says
@marrysiap, oh I’m so silly. It is BUDGET proffit statemnt. So i nbudget we use our estimation and then check over or under estimation
John Moffat says
@marrysiap, That’s right 🙂
others007 says
cant watch it also ?
whats prob?
herbiby says
good job sir! it is understandable, but its too much 🙁 wonder how we gona remember all this in the exams…
time2 says
Hmm,no sound on this video
admin says
@time2, problem with sound is from your end, video works fine!
ella1025 says
awesome explanation better than my instructor who is trying his highest level but still students don’t understand it clearly . Thumbs up
shahidchanna says
you have calculated budgeted profit but in notes it is written actual statement can you please explain it .and further more how to prepare actual profit statement under absorption and marginal costing please reply asap.
allamardneket4 says
i dont have facebook a/c .how can i watch full movie?
admin says
you don’t need Facebook to watch lectures
maureen01 says
how do i access this video
samat says
hi
gabigabi says
What happened to video??? cant watch it
awins says
@gabigabi, u need to like it, only then u can see it
sohailssaeed says
good for health ,because these lectures are tension free.