Managerial Accounting - The Ultimate Beginner Course!

In this video, I give you a nice introduction to this class: Managerial Accounting. Managers are always on the lookout to make better decisions. I give you some important terms you must know to better understand this type of accounting. Take a look!

Every product follows a 5 step process to reach the customer. In this video, I show you a familiar example to help you better understand the value chain. Not only that, I'll lay out the 5 steps along with a really cool graphic. Check it out!

Download and Print this word doc before you start watching the practice videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

In this video I run through some great foundational concepts you have to know for this class. What are costs anyway? Well today I will show you the difference between cost and price, cost objects and opportunity costs. Really good stuff. Take a look!

Now we get into some specific types of costs which will help you better understand the differences. In this class we go through so many different types so let's start with direct vs. indirect costs. In this video, I introduce you to the main differences with a cool example. You'll see why direct costs are traced and indirect costs are allocated. Check it out!

Download and Print this word doc before you start watching the “Let’s Match” videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

Fixed Costs, Opportunity Costs, Variable Costs, Indirect Costs...So many terms we cover in this video! Practice with me as we go through a very important matching exercise. This will help you understand the different types of costs you'll see in this chapter. Take a look!

I whipped up this helpful graphic as a visual aid to clearly distinguish Period and Product Costs. Download it and have it with you as you watch the lessons and practice questions!

Do know the difference? If not, that's ok! In this video I break down the main differences between product and period costs. A great rule of thumb: Product Costs → Factory; Period Costs → Office Building. Check out the video to learn more!

Download and Print this word doc before you start watching the “Let’s Match” videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

So as you know, product costs are related to your output and period costs are everything else. Now we go through some real world examples as match product and period costs to the correct event. Super helpful!

Variable means "dependent." It depends on something else. In this video I show you exactly how this works. We go through the three primary types of variable costs: Direct Materials, Direct Labor, and Variable Overhead. From there I give you an awesome example that clearly lays how Variable costs can fluctuate based on units produced. Check it out!

Prime Costs and Conversion Costs are great formulas you must know. In this video I show you the main differences between the two. You'll also understand more why conversion costs is basically "costs that need to be converted." I'll show you a little trick on how this works.

There are many types of Fixed Costs. In this video, I show you the main differences between Fixed Costs and Variable Costs. Not only that, but I introduce you to the tricky concept of Relevant Range. I show you a cool graph that will help illustrate this concept. But don't worry if you don't get relevant range now, we'll revisit this later in the Cost Behavior chapter.

Download and Print this word doc before you start watching the “Let’s Match” videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

The three biggest types of costs in this class. Now we go through some helpful examples. Overhead is the most difficult for sure. I even throw in a few selling and admin costs. So practice with me here as we lay the foundation for the remaining chapters. Very helpful matching exercise. Start Practicin!

More Matchin with DM, Labor and Overhead. What if you produce furniture, what's glue considered? How bout the wood? These questions and more will be answered as we continue practicing. Start watchin!

This is the very first step in calculating cost of goods sold. I broke down cost of goods sold into 4 videos to make it easier to digest. Each video will contain a set a formulas that will carry forward to the next video. In this first video, I show you how to calculate Manufacturing Cost. You will take your product cost and add a little spice to it to help it fit within cost of goods sold. Definitely get your notepad out for this one!

Now we move on to the 2nd step of cost of goods sold. How do we calculate Cost of Goods Manufactured? This is an important step. I introduce you to the concept of work in process and show you an example so you can better understand the calculation. Check it out!

In this brief video, I show you exactly how to calculate cost of goods available for sale. I'll show you a helpful example so you can better understand why it's called "available for sale." Watch away!

And now for the final step: Cost of Goods Sold. Now you can combine your knowledge from the previous 3 videos. Figure out the last step to calculate Cost of Goods Sold. In the next video, we'll tackle a big problem. Take a look!

Download and Print this word doc before you start watching the illustration videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

Now we go through the entire Cost of Goods Sold formula in one big problem! First we calculate COGS then we plug it into an income statement so we can figure that operating income. Such a helpful video. Go ahead and start watchin, you'll need to know it!

Download and Print this word doc before you start watching the practice videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

Let's take our COGS knowledge and practice some MC questions they might throw at ya on your tests. Now we break down topics within their own question such as calculating DM used, cost of goods manufactured, important terms and much more. Take a look!

This is a great continuation of Part 1. We continue tackling a huge problem where we nail down each component of COGS. We get all the way down to calculating operating income. Gotta watch it!

Remember Fixed Costs from a few chapters ago? Well in this video we review fixed costs but we also talk about some cost behavior stuff. We see how Fixed Costs in total and how Fixed Costs per unit are affected based on units produced. Super helpful stuff. Take a look!

Download and Print this word doc before you start watching the practice videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

These are awesome conceptual questions over Fixed Costs and the Relevant range. I give you examples of fixed costs, dive even deeper into the relevant range and much much more.

Sometimes companies expand and need to purchase more fixed assets. Do their costs change? Definitely! But how does it work? Watch this video to learn more about mysteries of Fixed Costs.

In this video, we go through the two main cost formulas for this class: Total Variable Cost and Total Cost. I show you the formulas for each and some really helpful examples. This video will help you understand this chapter much better. Check it out!

Download and Print this word doc before you start watching the practice videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

Practice with me as go through general Cost Behavior problems. What happens to variable costs if you produce more units? What is a mixed cost? These questions and much more will answered. Take a look!

Alright! In this video I show you the infamous high low method. This method is ideal for separating Mixed Costs into Variable and Fixed Costs. I go through the formula to calculate both the variable rate and the fixed costs. Then we bring it all together with an example. Special Note: You gotta take notes throughout because numbers will be carried forward to the next slides. So make sure you're writing numbers down so you don't get lost. Good luck!

Download and Print this word doc before you start watching the practice videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

High Low Method is a great method to separate fixed costs. We go through some helpful questions involving lease payments, finding the highest activity and variable costs. Then we get the fixed costs. Lots of stuff in this one. Gotta take notes.

Regression Method you say? Yep. We didn't have a lesson on this one but I'll show ya in this vid it's not too tough. The formula is pretty straight forward. It's just another way to analyze cost behavior.

Here is a very helpful PDF! I compiled all the formulas you'll need for this chapter. From Contribution Margin to Operating Leverage. Keep this with you as watch the videos in this chapter. Check it out!

A great way to think about Contribution Margin, It's the Profit that "Contributes" to paying off Fixed Costs. In this video I'll show you all you need to know about contribution margin. We'll go through the primary formula and some really helpful examples. Take a look!

Now we talk about the main differences between these two statements. I'll give you a hint, they both end in Operating Income. However there are a lot of differences in between. You must know how these statements are calculated before we can go through test questions. Check it out!

Download and Print this word doc before you start watching the practice videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

Ratios are a great way to understand the contribution margin income statement. In this video, we discuss contribution margin ratio, variable cost ratio and how CM ratio is manipulated if selling price changes. Great video!

So why are companies so concerned with Breaking Even? Well in this video, I show you exactly how to calculate break even point in units. First we go through the break even concept and formula then we tackle a helpful example. Take a look!

Now that we know how to calculate break even point in units, how do we calculate BE point in Sales? Companies want to figure out how much sales they must earn to cover their costs. Well we're still gonna use the formula method but the denominator now changes. Get out your notepad and check out this video!

Download and Print this word doc before you start watching the practice videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

In this video, we tackle both Break Even Point in Sales and Units as we go through some very helpful multiple choice questions. There is even one question that uses % instead of dollars and you gotta calculate break even point in sales. Tricky stuff. Take a look!

Not gonna lie, this concept is very tricky. In this video, I show you my 4 steps to tackle BE Point in Bundles. Sometimes companies sell their products in bundles (grouped) to a cheaper price. Now we gotta figure out how to get the BE point. Make sure you’re taking notes on this one, there a few calculations. Good luck!

Now we practice what you learned in the previous lesson. Learn how to grab the sales mix and calculate contribution margin per bundle. There are also many steps in between. Excellent practice problems to help you better understand Break Even Point when there are multiple products.

What if Companies want to make a specific amount of income? Well in this video,we discuss how companies will achieve their financial goals through target income. We go through the formula then I illustrate this concept to you through a helpful example. Make sure to get out your formula sheet as you watch along. Take a look!

Download and Print this word doc before you start watching the practice videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

Ooo we go through some really helpful questions in this video. We figure out how many units and how much sales revenue earned to achieve a target income. We practice through multiple problems including additional concepts like Margin of Safety and Degree of Operating Leverage. Take a look!

In this video, introduce you to the concept of Job Costing with some helpful examples. Not only, that you'll get a nice illustrative comparison between job costing and process costing. Check it out!

Normal costing is the preferred method used by internal accounting. It involves more estimates which yields are more accurate record of Overhead. In this video, I break down the main differences between these two methods. Take a look!

And now for my famous Overhead Video! Students love this video because it lays out the how to apply overhead in 5 easy steps. I go through each step with a full example so you can understand exactly how to apply overhead in job costing. This is a must see. There are so many test questions where you will have to follow this process. Get to watchin and make sure to take notes!

Ever heard of a Time Ticket or Job Order Cost Sheet? Well in this video, I show you the important documents you must know for Job Costing. For every job, a company must track the labor time, materials cost etc. So in this video, I go through the main documents in a job cost flow. Definitely take notes so you can understand how it works. Check it out!

Download and Print this word doc before you start watching the practice videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

Get Ready to Practice with me! This a big video series where cover everything you need to know about job costing. In this video we go through some of the foundational concepts of job costing, stuff like Overhead, Normal Costing and a huge problem where we try to figure out Direct Labor hours when Applied Overhead is given to us. That one is super tough. Start watchin!

Now we start nailing out important stuff on Overhead Variances, Applied Overhead, Predetermined Overhead rate and more. I start a huge problem on specific company and all their various jobs. This one is tricky but I'll show you how to attack it.

Continue with me as we finish up the problem we started in Pt. 2. How many jobs are still in Work in Process? How many were finished and sold? We also plug it in in to get the selling price and operating income. Make sure to take notes.

Download and Print this word doc before you start watching the illustration videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

From A to Z, I'll show you every step of the job cost flow. This big problem has multiple jobs you have to account for. I'll illustrate to you the flow so you can better understand this job costing. We go through and categorize jobs into WIP, Finished Goods and Cost of Goods Sold. We even apply overhead to each job and calculate the unit cost. Take a look!

This video is a continuation of Part 1. This problem is great for anyone still confused on job costing. You must keep practicing so you can improve.

Now I illustrate the Job Cost Flow in journal entries. You must watch the previous two videos first for this one to make sense. We use all the numbers from those videos. When you request materials, how does the journal entry look? Or how about Actual Overhead? I show you some awesome T Accounts so won't get too lost. Take a look!

And now welcome to Variable Costing. First we'll go over some unique traits, then I show you the Contribution Margin Income Statement. From there we'll tackle a brief example so you can see exactly how the this type of income statement is written. Take a look!

Download and Print this word doc before you start watching the practice videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

In this video, we go through some awesome problems involving calculating Variable Cost of Goods Sold and a full Contribution Margin Income Statement. Not only that, I give you the inside scoop on some foundational concepts of variable costing. Definitely worth it to take notes. Check it out!

More practice here as we tackle a huge problem where we get our unit costs and apply to cost of goods sold. Then we get all the way down to calculating operating income. Make sure to watch this one!

Now that we're done practicing with Variable Costing, let's take on Absorption Costing! Now you're probably asking what do we absorb? Well in this video, I show you some interesting characteristics, the Gross Margin Income Statement and we go through a helpful example. Go ahead and start watchin!

Download and Print this word doc before you start watching the practice videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

In this practice video, we use similar numbers from the Variable Costing video but we now Absorption costing. What's that mean again? We now we "absorb" fixed overhead into our cost of goods sold. Practice with me here as I show you how to get the unit costs, cost of goods sold and operating income.

Ha I know you love when I say this: Get out those Notecards. In this video, I go through the various cost and income differences between Variable and Absorption Costing. What costs are classified as Cost of Goods Sold for Absorption? What happens if you produce more goods than you sell, which which method yields a higher income? Learn that and much more. Check it out!

Download and Print this word doc before you start watching the short answer videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

And now we tie it all together! In this short answer problem, we use one big dataset and calculate both Variable Costing and Absorption Costing. This will give you a great comparison and see how their cost of goods sold differ and how their operating incomes differ. Get out your notepad for this one, make sure you follow along with me!

Let me ask you, how do you make tough decisions? Know it or not, but I bet you're following a few of these steps you'll see in this video. In this video, I take a nice break from Accounting and use a scenario most of you have experienced before. This will help you understand this chapter and lay down the foundation you need to do well. We tackle the 6 steps necessary to make a decision. Check it out!

In this chapter, there a ton of important terms you gotta know. What is a sunk cost? What's an avoidable cost? These and many more are written in this pdf. Take a look, it'll help you practice with me later!

Now we tackle our first decision scenario. Should a manufacturing company make or buy their product? Well that's a good question right. In this video, I show the ins and outs of make or buy scenarios. We go through a helpful example and I even give you crazy hypothetical. You gotta check it out before you start practicing test questions with me. Check it out!

Download and Print this word doc before you start watching the practice videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

Whoo! And now my favorite set of questions. I love this chapter honestly. It can be applied to your daily life. So as you know from the previous lesson, managers in a mfg company have to decide to make the product in the factory or buy from an outside supplier. In this video, I show you a big problem where we figure out, if you decide to buy the product, what is the effect on income? We go through a lot of tricky steps to get to the answer. But I'll show you how to do it the easy way. Take a look!

More Make or Buy decisions. In this video, I'll show you another make or buy problem. It's a little simpler than the first video but now I throw a different type of variable at ya. What if you decide to rent out unused factory space? How does that affect your decision to make or buy? Check it out!

In this lesson today, I show you when manufacturing companies need to make a tough decision. They must decide to either accept or reject an order. You're probably thinking why is that tough? They should be accepting orders. Well this special order is at a low selling price. See how you make the decision whether to fulfill the order or reject. Take a look!

Download and Print this word doc before you start watching the practice videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

So what happens if a company is under capacity? They just aren't producing enough. So if a potential buyer bends their ear to a large order. The manufacturing company must figure out if they should accept or reject the order. In this video, we go through a big multiple choice problem where I illustrate exactly how a manufacturing company will make that decision. Accept or Reject? Find out how in this video.

Now we continue with another Special Order Decision problem. This one is trickier than part 1 because I throw a few different variables at ya that will impact your income statement. Please be taking notes throughout these videos and once go at your own pace. Pause the video if you need to then keep going. Take a look, you won't wanna miss it!

So imagine you own a cow...and you can take milk and steak from that cow. How do you allocate the joint costs? Should you process that milk further into cheese? All great questions, right. Well in this video, I use a helpful example to help you understand this tricky sell or process further scenario. Take a look!

Download and Print this word doc before you start watching the practice videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

You're gonna like this video! Today, we'll be figuring out should we sell the produce at split off or process it further. I show you how to allocate joint costs using the relative sales value method then from there we make decisions based on profit after processing a product further. Take a look!

Now onto Part 2! We continue practicing Keep or Drop. In this video, I show you a cool problem involving Christmas Tree and Lumber. Should you refine the lumber or sell at split off? Take a look!

Sometimes a company has a limited supply of resources. Which Resources? Well maybe it's machine hours, maybe it's electricity. Whatever it might be, they need to prioritize the most profitable products so they make the most money off a limited resource.

Download and Print this word doc before you start watching the practice videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

What do you mean by constrained resources? Well as you learned in the lesson, sometimes companies are limited on certain resources. They need to prioritize production for products that earn the most per limited resource. In this video, I go through some awesome practice questions that will prep you more for your exams. You won't wanna miss it. Take a look!

I'm sure you have standards, don't ya? Well I sure hope so. In this video, I show you what a standard is in a manufacturing settings. Companies must set standards for all the metrics to make sure they are hitting their mark. I show other basic terms you must know for this chapter: Variances, Favorable or Unfavorable and Output. Check it out!

Remember Variances? Well if you haven't seen my lesson on Standards, please watch that first. In this video, I show you how Direct Materials Variances work. We go through the Materials Price Variance and Materials Efficiency Variance (Quantity Variance.) How much are companies paying for their materials? Are they Wasteful? Start taking notes as we go through formulas and helpful examples for each. Take a look! P.S. I only go through the Formulaic method, not Tabular.

And now onto Direct Labor Variances. For Labor Rate and Efficiency Variance, we focus on the workers. Are companies paying their workers well? Are workers lazy or efficient? In this video, discover both types of Variances, formulas, examples and even the causes of these variances. It's a really helpful video. Check it out!

And now for a trusty lil PDF that has all the important formulas. Go ahead and have it with you as you practice!

Download and Print this word doc before you start watching the practice videos! That way as you watch me work out the problems, you can practice along with me. Make sure to take good notes. Treat this like your exam/quiz, it'll be a big help!

Ok! So in this video we go through various MC questions on how to calculate direct material and labor variances. Some are really tricky where they give you the variance and you gotta figure out a different variable. Get out your formula sheet and start taking notes!

As we continue practicing here, I give you lots of other types of problems you'll see on your tests. In this video, we go through more variance problems but now we're focusing more on unfavorable vs. favorable variances. I show you some cool tricks to easily distinguish between the two. Check it out!

This video is a continuation of part 2 problem. In part 2, we go through from A to Z, Materials Price Variance, Materials Efficiency or Usage Variance, Labor Rate Variance and Labor Efficiency Variance. Now, in this video, I show you how to calculate total variances and there is a good hypothetical question at the end. Check it out!