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ACCA F5 Activity Based Costing – Lecture 1 – Example 1a

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  4. Maybe I think you are using the labor rate paid for each unit according to the question given , if that is it , then you are very correct and i was crazy for not using the labor rate given.

    You are the best sir.

  5. Sir, listening to your lecture in ex.1 these units have different production units A, B and C.
    Setting the cost card for material and labor hours , yes material is clear from the question but the labor hour is different for each product A is 2hrs with material cost
    $5 which is 10, B per unit is material cost is
    $10 and 1 hour which is supposed to be
    $10 how come did you get 5 and 5 for each labor respectively? Because these are different product with different labor used per unit.

  7. Hi Sir,

    My friend passed the F5 paper in march 2017, he bought the books from BPP learning media website. In the cover of the book it is mentioned as the syllabus is applicable till mar 2017, will it be useful for sep 2017 exams as well??

    • The link to download the notes is just above the lecture. There is no point in watching the lectures without printing out the free lecture notes (and the solutions are in the lecture notes as well) – and of course I work through the solution in the lecture.

      The lecture notes and the lectures go together – one without the other is a waste of your time.

  10. Greetings Mr. John
    I would like to know If the materials on your site enough for the exam for F5 and F6 ,or should I use external material.
    And If I need external materials which one would you recommend.

    • The extra material you must buy are Revision Kits from one of the ACCA approved publishers – they contain lots of exam standard questions practice, and practice is vital.
      All the approved publishers are good (you can get a discount from BPP as an OpenTuition students if you click on the BPP link on the page).

  13. Dear Mr. John,
    Could I have a question, please?
    In the textbook, “absorption costing results in a misleading division of costs between low-volume and high-volume products. And ABC provides a more meaningful way”
    I don’t understand because in example 1 of your lecture note, when calculating O/H absorption rate, we consider production units..

    • Absorption rates are usually calculated on either labour or machine hours (depending on what the question asks for).

      However, that is not what the problem is. The problem is that ordinary absorption costing absorbs all of the overheads so as to get a standard cost per hour or a standard cost per unit, whereas in fact many of the overheads will occur for reasons such as numbers of set-ups (as illustrated in the ABC example). ABC absorbs the overheads in a more sensible way – based on what is causing the overheads.

      • I enjoyed your lecture so much on f3 and i passed along with f1 but f2 has remain a disaster though i hope to pass it this time around because ACCA questions don’t bring most question from f2 only . I am currently planning to write f5 and f2 together to get more verse knowledge on these papers . This is in case i do not pass the f2 already written this June. I have gone through exams kit Kaplan for f2 .. June f2 theory was only ROCE and variance analysis came out others were like catastrophy because i did not see that in the whole syllabus . I hope i pass it and then write f5 Sept.
        Your are the best sir.

      • Sir the new lectures of Activity based costings are of 43 minutes in total whereas old lecture is of 73 minutes,

        Similarly is the case with target costing new lectures comprises of only 26 minutes whereas old lecture is of 64 minutes

        Please don’t take me wrong, I greatly appreciate your effort but my F2 is about to finish and I am about to take F5 from your site but this great difference in video length is confusing me a little bit.

      • The length of the lectures is not relevant – they cover exactly the same things and remain a complete course for Paper F5 covering everything needed to pass the exam well.

        Some of the previous lectures were recorded in the classroom which caused delays while people were asking questions.

        More quantity does not mean more quality.

      • Wow!!!! You have updated all F5 lectures, that’s great!!! Well any new lectures coming in for other subjects such as f9, f2 or f3???

  20. Sir are you going to remove old lectures Or they will be also be present there under “old lectures” heading. The lectures that are new are shorter in length whereas as old lectures are greater in length, so are there any topics skipped in new ones which are present in old lectures??

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