Try again – it is now the PM Ask the Tutor Forum (the ACCA have changed then name of the exam) so if you have it bookmarked then you need to change your bookmark.
If you still have problems then please ask on the support page – the link is above – and admin with help you. The forum is working.
In future please ask this sort of question in the Ask the Tutor Forum rather than as a comment on a lecture.
Absorption costing allocates overheads at the same rate per unit to all products – whether high or low volume. However, low volume products are likely to use more resources (just as I explain the lecture) and therefore low volume products are likely to be more expense per unit. ABC deals with this, whereas absorption costing does not.
Everything is good….but i believe the volume of lecture is low to listen…as i wear headphones and still got difficulty to listen. Please be more loud….otherwise its perfect…i just felt i am missing your verbal lectures.
A well done presentation. Cost savings as an advantage was well explained. Is it possible to increase unit of production of C to reduce costs because ABC tend to over cost low volume products and under cost high volume products. Thanks
Yes – increasing production will reduce costs, but the problem is as to whether we would be able to sell all the production. Maybe with lower costs we could reduce the price and therefore sell more, but that is the problem in real life 馃檪
annamalai27 says
Hi Sir,
The Ask the tutor Forum isn’t working. It says “the requested page could not be found”.
John Moffat says
Try again – it is now the PM Ask the Tutor Forum (the ACCA have changed then name of the exam) so if you have it bookmarked then you need to change your bookmark.
If you still have problems then please ask on the support page – the link is above – and admin with help you. The forum is working.
svetlanawool says
Thank you ever so much Mr Moffat for these great resources that help me to understand the subject much better.
Best wishes,
Svetlana
John Moffat says
Thank you for your comment 馃檪
raheelislam says
absorption costing tends to under allocate OH costs to low volume product.sir can u explain this statement,how?
John Moffat says
In future please ask this sort of question in the Ask the Tutor Forum rather than as a comment on a lecture.
Absorption costing allocates overheads at the same rate per unit to all products – whether high or low volume.
However, low volume products are likely to use more resources (just as I explain the lecture) and therefore low volume products are likely to be more expense per unit. ABC deals with this, whereas absorption costing does not.
loukasierides says
Dear Sir,
in the lecture example, is the main reason for the greater OH absorption by unit C the 20 orders despatched for only 2000 units produced?
John Moffat says
Correct 馃檪
loukasierides says
thank you very much
John Moffat says
You are welcome
terence says
Hi
Thanks for the lectures and all OT do really helpful.
If possible could you give a brief explanation of how you would approach ABC for a service based company?
For example a contact centre taking telephone orders and sub-contracting to other suppliers and charging a margin. What would be your approach.
Thanks,
Terence
John Moffat says
Please ask this sort of question in the Ask the Tutor Forum and not as a comment on a lecture.
zartarnaeemi says
Everything is good….but i believe the volume of lecture is low to listen…as i wear headphones and still got difficulty to listen. Please be more loud….otherwise its perfect…i just felt i am missing your verbal lectures.
John Moffat says
The volume is fine – have you tried using the slider at the bottom of the screen to turn the volume up?
kiki3 says
Well explained ?. Thank you so much John.
John Moffat says
Thank you for the comment 馃檪
sagarcma says
How can I calculate Group Retained Earning on Group Financial Statement??Can any one explain please with example???
John Moffat says
Why on earth are you asking this as a comment on a Paper f5 forum? This has nothing at all to do with Paper F5.
You will find the answer to your question by watching the free Paper F3 lectures on consolidations!!!
ashwini96 says
sir
how can ABC lead to reduction in total overheads?
John Moffat says
But I explain this in the lecture and give examples!
By focussing on what is causing the overheads to occur you may be able to operate more efficiently and therefore incur lower overheads.
faithmilles says
well explained thnk you
Samuel Koroma says
A well done presentation. Cost savings as an advantage was well explained. Is it possible to increase unit of production of C to reduce costs because ABC tend to over cost low volume products and under cost high volume products. Thanks
John Moffat says
Thank you for the comment 馃檪
Yes – increasing production will reduce costs, but the problem is as to whether we would be able to sell all the production. Maybe with lower costs we could reduce the price and therefore sell more, but that is the problem in real life 馃檪
Samuel Koroma says
Thanks John
John Moffat says
You are welcome 馃檪
uhneenee says
Makes a lot of sense. Thank you
nneka83 says
Very Helpful thanks a lot
John Moffat says
You are welcome 馃檪
shaazfaruqui says
Very Very helpful.!
Thank you sir
John Moffat says
Thank you for the comment 馃檪
mohit2095 says
Amazing!
John Moffat says
Thank you 馃檪
kelebogile says
Hi Guys I need a study partner with F5. I planning to write In June 2017 if anyone interest please let me know.
John Moffat says
There is no point at all in asking here as a comment on a lecture!
Use the Study Buddies forum to ask.
yunush says
The lectures are indeed great and the tutor is exceptionally powerful.
John Moffat says
Thank you very much for your comment 馃檪
peshy says
this is great improvement comparing with old lectures
most appreciated
John Moffat says
Thank you for the comment 馃檪