Absorption Costing vs Marginal Costing | Explained with Example

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  • เผยแพร่เมื่อ 17 ธ.ค. 2024

ความคิดเห็น • 148

  • @yaseenali5842
    @yaseenali5842 5 ปีที่แล้ว +92

    Your work is better then any youtuber, you are better then my class teacher, keep uploading such topics
    Very grateful to know about about this channel

    • @Counttuts
      @Counttuts  5 ปีที่แล้ว +3

      Thank you for the kind comment Yaseen :).

    • @georgephilip1966
      @georgephilip1966 3 ปีที่แล้ว +1

      @@Counttuts For over and under absorption, why didn't we consider the variable cost of r 35?

  • @boitumelobonginkosikunene3547
    @boitumelobonginkosikunene3547 3 ปีที่แล้ว +26

    A whole semester struggle cleared in 32 minutes🤯...your videos always blow my mind...and still, I don't expect anything less everytime I come back for more💯👍. Thank you, you've really helped me.

  • @kijeannie4317
    @kijeannie4317 3 ปีที่แล้ว +14

    This really helped me understand marginal and absorption costing.... I had a mental block for years until now. Wonderfully explained .... such clarity.

  • @ambrosemutai5463
    @ambrosemutai5463 2 ปีที่แล้ว +4

    This is one of the best explanations for costing and has helped me understand absorption and marginal costing so well

  • @marcleven8477
    @marcleven8477 4 ปีที่แล้ว +7

    very well explained you are doing a better job than my uni lecturers thanks a lot keep up the good work!

  • @maryamadekunle6732
    @maryamadekunle6732 5 หลายเดือนก่อน

    This is amazing
    I am a tutor and I can say I understand it way better.
    Thank you for breaking this in the best possible way.

  • @aphiwembande8661
    @aphiwembande8661 ปีที่แล้ว +1

    Haven't even watched this but I've already liked cause I know I know it will be fire

  • @muigaisarah5342
    @muigaisarah5342 5 ปีที่แล้ว +6

    u've saved lots of students , thanks a lot

    • @Counttuts
      @Counttuts  5 ปีที่แล้ว

      You are welcome. Thank you for the kind feedback.

  • @ajithkumarrj8545
    @ajithkumarrj8545 2 ปีที่แล้ว +1

    After searching lots of classes Finally I found ur channel for this topic . Amazing explain all the concepts.tq soo much sir ❤️

  • @tonykiprop5802
    @tonykiprop5802 4 ปีที่แล้ว +1

    Thank you Counttuts for the explainer videos. You really help us to be more efficient instead of searching all over for such good content. You are making a difference, Appreciated!

  • @karabobusang1942
    @karabobusang1942 ปีที่แล้ว +7

    You are Simply Amazing, you are literally my Lecturer for Management Accounting hey 🤞🏽❤️❤️.
    Please continue doing such amazing work 🙏🏻

  • @boitumelomokotong4861
    @boitumelomokotong4861 2 ปีที่แล้ว +4

    This was very informative. I enjoyed it and it has helped me tremendously👏🔥. God bless you.

  • @shantelhalley6976
    @shantelhalley6976 2 ปีที่แล้ว

    Always dislike this topic but u made it simple... great job

  • @daia8404
    @daia8404 4 ปีที่แล้ว +2

    Thank you so much!!! I understand this more than I ever did in college

  • @jiyaa8462
    @jiyaa8462 ปีที่แล้ว

    Thank you so much, you're literally a life saver, having my finals tmrw, this really helped!

  • @darkknight6574
    @darkknight6574 3 ปีที่แล้ว

    Can't believe how much helpful this video is.
    Thank-you so much!

  • @MrsObiako
    @MrsObiako ปีที่แล้ว

    Thank you Sir... I have truly understood this, especially how to treat over/under absorption cost...

  • @esaubanda
    @esaubanda 4 ปีที่แล้ว +3

    Immensely elated! This is incredible! I appreciate. You deserve my utmost attention. Keep it up. More blessings on you, great work, awesome!! Thanks

  • @EmyrEdmund
    @EmyrEdmund 2 หลายเดือนก่อน

    Thank you! Your explanation and examples helped me understand, when I was struggling to make it click in my head :D

  • @mariaindilileinge8761
    @mariaindilileinge8761 2 ปีที่แล้ว +1

    I really had a block mind on this but cleared , thank you very much sir keep uploading such topics.

  • @tatisammy9169
    @tatisammy9169 4 ปีที่แล้ว +16

    How did you teach me 2 2hr classes in 32 mins thank you

  • @RsWePVM
    @RsWePVM 4 ปีที่แล้ว +2

    Thank you sir, crisp and clear. Much better than how my teacher in college is doing.

    • @Counttuts
      @Counttuts  4 ปีที่แล้ว

      Thank you for the kind feedback.

  • @hasvinvictor7146
    @hasvinvictor7146 4 ปีที่แล้ว

    Best video to watch on absorption and marginal costing!!! Thank you so much @counttuts

  • @luckyboyprins8456
    @luckyboyprins8456 ปีที่แล้ว

    lectures give us hard times of learning , i thank god i found you sir
    🎉🎊

  • @wilkajohannes1003
    @wilkajohannes1003 3 ปีที่แล้ว

    You are a life saver sir. Please continue doing this.

  • @katrinaaliviza457
    @katrinaaliviza457 4 ปีที่แล้ว +9

    I had a really hard time understanding this concept. I've watched a lot of videos read a lot and still nothing. But earlier today my friend shared this link. I'm so excited I can answer a question blindfolded 😂. Thank you so much for amaizing work sir.

    • @Counttuts
      @Counttuts  4 ปีที่แล้ว

      Hello Katrina, glad that it helped. Thanks for the kind feedback.

  • @davidgarvin2281
    @davidgarvin2281 5 ปีที่แล้ว +1

    Thank you for explaining this topic thoroughly, you have been very helpful.

  • @madalitsombewe9948
    @madalitsombewe9948 4 ปีที่แล้ว

    Love your teaching (simply simple and clear )

  • @ShaggyGriff96
    @ShaggyGriff96 2 ปีที่แล้ว

    thank you for taking the time to do this, my understanding is now much clearer :)

  • @nonkululekohlatshwayo8164
    @nonkululekohlatshwayo8164 ปีที่แล้ว

    Sir. You are simply the best

  • @charitytheko8116
    @charitytheko8116 3 ปีที่แล้ว +1

    Wow... everything makes sense now..Thank you counttut 😁

  • @becomingCA-SA
    @becomingCA-SA 2 ปีที่แล้ว

    you definitely got a subscriber by the wat you explained this 💯

  • @ThomasSheriff21Chindende
    @ThomasSheriff21Chindende ปีที่แล้ว

    the best ever explanations

  • @alexwhelan981
    @alexwhelan981 2 ปีที่แล้ว

    Thank you very much. Very informative and helped me prepare for an interview. Keep up the good work!

  • @fredrick_mwaura
    @fredrick_mwaura 2 ปีที่แล้ว

    This is very well articulated. Keep up the good job.

  • @sharnyn7322
    @sharnyn7322 3 ปีที่แล้ว +1

    I cannot thank you enough for this video!!!

  • @chandajere9586
    @chandajere9586 2 ปีที่แล้ว

    This is very clear and concise.Thank you so much

  • @deepakkrishnakb
    @deepakkrishnakb 4 ปีที่แล้ว +1

    Simple and nice explanation,thanks alot

  • @chiposvubure7150
    @chiposvubure7150 4 ปีที่แล้ว +3

    Thank you so much 🤝 Your are a good lecturer

    • @chiposvubure7150
      @chiposvubure7150 4 ปีที่แล้ว +1

      I am looking for more videos for MAC2601 i can't find them 😢

  • @MultiSinovuyo
    @MultiSinovuyo 9 หลายเดือนก่อน

    Thank you for this video, made such a big difference

  • @mohamedfaisal4123
    @mohamedfaisal4123 11 หลายเดือนก่อน

    Top notch explanation.

  • @sophielalalification
    @sophielalalification 2 ปีที่แล้ว +1

    Simple, clear and straight to the point! Thank you!

  • @baloonram4959
    @baloonram4959 3 ปีที่แล้ว

    That was a very good explanation, now i am ready for exams, thank you sir :D

  • @smartmgbachi9173
    @smartmgbachi9173 4 ปีที่แล้ว +3

    if i dont comment i must be selfish. thank you so much for breaking down this topic. God bless you

    • @Counttuts
      @Counttuts  4 ปีที่แล้ว

      Thank you :) Blessings

  • @ropafadzochivizhe4561
    @ropafadzochivizhe4561 3 ปีที่แล้ว

    Thank u for the presentation it really helped me especially absorption costing

  • @tiff8831
    @tiff8831 11 หลายเดือนก่อน

    This was very helpful. Thanks sir

  • @paysonobi6548
    @paysonobi6548 3 ปีที่แล้ว

    I enjoyed your teaching

  • @barbaraedith4111
    @barbaraedith4111 5 ปีที่แล้ว +3

    You are such a wonderful Teacher/tutor. You are a star. I understand a lot from your video better than reading any book. Excellent.
    Do you have any other accounting videos? please upload more.

    • @Counttuts
      @Counttuts  5 ปีที่แล้ว +1

      Thank you Barbara, you can visit our channel for all accounting videos, and more to come.

  • @ryan4314
    @ryan4314 4 ปีที่แล้ว +2

    u saved my life thank you

  • @lisanaindjala2278
    @lisanaindjala2278 3 ปีที่แล้ว +3

    Thank you so much sir for teaching me this😭I’m truly grateful and you are a great lecturer!

  • @symplytomi5178
    @symplytomi5178 3 ปีที่แล้ว

    God bless you,you are a great lecturer!!!!

  • @JanetMong
    @JanetMong 7 หลายเดือนก่อน

    Thankyou so much! Well explained

  • @alenigodwin560
    @alenigodwin560 ปีที่แล้ว

    U explained well brother thank you i wish we would get more examples with opening inventory

  • @biandaful
    @biandaful 4 ปีที่แล้ว +2

    Well explained!!!!

  • @straightouttamatrix
    @straightouttamatrix 4 ปีที่แล้ว +3

    This was more than i was looking for and in a best way possible. Really appreciate the effort SIR. Thanks alot🙏🏻

  • @Dendele2024
    @Dendele2024 3 ปีที่แล้ว

    Best explanatory video 🥂

  • @mbasalamla7533
    @mbasalamla7533 2 ปีที่แล้ว

    wow 🙌🙌🙌 thank you Mr for you help
    now I understand clearly

  • @katienelson8163
    @katienelson8163 7 หลายเดือนก่อน

    thank you so much! this really helped me

  • @praisemutoko3175
    @praisemutoko3175 4 ปีที่แล้ว +1

    Thank you soo much, that was worthwhile. Now i am confident that i understand

    • @Counttuts
      @Counttuts  4 ปีที่แล้ว

      You are welcome :)

  • @RealHesk
    @RealHesk 3 ปีที่แล้ว

    Thanks alot for your service. You've helped me

  • @walterbigblue
    @walterbigblue 3 ปีที่แล้ว +3

    You stated that over absorption of overheads is deducted from the P&L and under absorption is added to the P&L. My understanding is that it should be the other way around. Under absorption of overheads are deducted from the P&L while over absorptions are added thus increasing gross profit.

    • @Counttuts
      @Counttuts  3 ปีที่แล้ว

      That would be incorrect actually. Follow our explanation in the lesson again to understand.

  • @lovehurtswhenattached92
    @lovehurtswhenattached92 2 ปีที่แล้ว

    Thanks highly appreciated explanations on point and format easy for anyone to understand 👍 😀

  • @ronaharnischleinitz6335
    @ronaharnischleinitz6335 4 ปีที่แล้ว +2

    Thanks alot, was much of help.

  • @neonmuzik8979
    @neonmuzik8979 4 ปีที่แล้ว

    thanks sir, I think this made up my preparation of an exam I ama bout have! thx again

  • @izzyokafor8888
    @izzyokafor8888 2 ปีที่แล้ว

    Keep up the good work watching from Nigeria. Can we also suggest topics for you to teach?

  • @Ruth-Mocheche
    @Ruth-Mocheche 4 ปีที่แล้ว +1

    nice lecture. big ups

  • @yerroa.jallow4452
    @yerroa.jallow4452 2 ปีที่แล้ว

    thank you for the video, its really helpful.

  • @Dan-vk7jc
    @Dan-vk7jc 2 ปีที่แล้ว

    Thanks so much assisted me so much!

  • @kudsiamow3441
    @kudsiamow3441 5 ปีที่แล้ว +4

    Thanks a lot for explaining in details! ♥

  • @louisebowa6032
    @louisebowa6032 3 ปีที่แล้ว

    This was really helpful, thank you very much🙏🏾

  • @patricklikalamu8264
    @patricklikalamu8264 11 หลายเดือนก่อน

    this is very helpful

  • @patrickugwuegbu6119
    @patrickugwuegbu6119 2 ปีที่แล้ว

    Very informative

  • @musondamulenga9306
    @musondamulenga9306 5 ปีที่แล้ว +2

    thanks a lot ,great explanation!

    • @Counttuts
      @Counttuts  5 ปีที่แล้ว

      You are welcome, and thank you Musonda.

  • @danisabaloyi608
    @danisabaloyi608 4 ปีที่แล้ว

    Thank You, your work is amazing

  • @Anele_Gcabashe
    @Anele_Gcabashe ปีที่แล้ว +1

    My uni. Must start paying you please 😹❤️

  • @braynotieno9564
    @braynotieno9564 3 ปีที่แล้ว

    Good work 👏 🙌 👍

  • @huisinyii4353
    @huisinyii4353 ปีที่แล้ว

    i was wondering why when there is higher closing stock = profit will be higher when using absorption costing, and your example easily let me understand how it works. Thank you!

  • @akankshathooti
    @akankshathooti 5 ปีที่แล้ว +2

    Thanks sir grt explanation

    • @Counttuts
      @Counttuts  5 ปีที่แล้ว

      Thank you. You are welcome.

  • @thembekilegwala3465
    @thembekilegwala3465 3 ปีที่แล้ว

    Thank you. you are amazing

  • @aduratomibabalola9884
    @aduratomibabalola9884 3 ปีที่แล้ว

    Amazing lecture. cheers.

  • @lucianakale1132
    @lucianakale1132 2 ปีที่แล้ว

    Woow…….I don’t know how to thank you, I was wondering how am gonna face my exams next week

  • @chaly839
    @chaly839 3 ปีที่แล้ว

    Good lecture thank you so much. there is no problem with the way you have treated over/under absorption, my issue is on the part where you said when there is an increase in opening or closing inventory then the creation of overe/under absorption, my thinking is instead of increase in opening and closing let it be the difference between the budgeted production and the actual production.

  • @mweembemunsaka6312
    @mweembemunsaka6312 13 วันที่ผ่านมา

    Can these be referred to as income statements as well?

  • @danielokere3624
    @danielokere3624 3 ปีที่แล้ว +1

    Please sir how do u know when to apply the absorbed overhead formula I'm a bit confused 😔

  • @0dawisdom478
    @0dawisdom478 3 ปีที่แล้ว

    Under and over absorbed use to confuse me, now im fine thnx

  • @mikanyay
    @mikanyay ปีที่แล้ว

    Thank you 😊

  • @JosephSatoh-em1sl
    @JosephSatoh-em1sl 3 หลายเดือนก่อน +3

    Who enjoyed it in 2024😂

  • @bethafek6170
    @bethafek6170 3 ปีที่แล้ว

    Hello, what about if you bought plant and machinery, do you add it on the absorption costing?

  • @karenagyeman6847
    @karenagyeman6847 3 ปีที่แล้ว

    Please what will I do if there is a variable selling,distribution and administration costs of about 20% of the sales value

  • @sbohmdu2557
    @sbohmdu2557 4 ปีที่แล้ว

    it helps a lot, thanks.

  • @fahimjalal2703
    @fahimjalal2703 3 ปีที่แล้ว

    Thx for making the vid 😊

  • @nokwandanoks1559
    @nokwandanoks1559 9 หลายเดือนก่อน

    Good day can i ask why you not bringing forward the closing. Inventory to the next production of 7000 units meaning the 41000 must be the opening for the production of 7000 units than closing Inventory will be 41000

  • @boineelomasupe740
    @boineelomasupe740 ปีที่แล้ว

    Thank you❤❤❤❤❤

  • @关家俊5325
    @关家俊5325 3 ปีที่แล้ว

    hey sir, why under/over absorbed overhead only included fixed production cost ,how about the variable production cost

  • @paysonobi6548
    @paysonobi6548 3 ปีที่แล้ว

    Please I need to ask some questions base on absorption and marginal costing...
    Been trying to do some calculations on it... But it was difficult...

  • @khalifahmedmohamed7204
    @khalifahmedmohamed7204 3 ปีที่แล้ว

    Thanks ☺️☺️☺️

  • @sowdaayaan1843
    @sowdaayaan1843 3 ปีที่แล้ว

    The closing inventory for production of 6000 should it not be the opening inventory for the next production that 7000 units?

  • @benmuhizi1975
    @benmuhizi1975 3 ปีที่แล้ว

    Sir, Thank you.

  • @userxp7055
    @userxp7055 4 ปีที่แล้ว

    What if sales in units is given along with production in units ? How do we find inventories?

  • @ntcuong01ct1
    @ntcuong01ct1 4 ปีที่แล้ว +1

    Dear Friends,
    I have a question:
    I want to setup Absorption costing of a product in year 2020. Next, I want to compare actual costing and Absorption costing in this product by month, year. How do I setup?.