Variable, Absorption and Activity Based Costing
4.5 (4 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
741 students enrolled

Variable, Absorption and Activity Based Costing

Under-graduate and Post-graduate course in Variable, Absorption and Activity based costing
4.5 (4 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
741 students enrolled
Last updated 5/2019
English
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Current price: $11.99 Original price: $19.99 Discount: 40% off
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This course includes
  • 3.5 hours on-demand video
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
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What you'll learn
  • Variable costing, Absorption costing and Activity Based costing systems
Requirements
  • First year in Accountancy
Description

This course has been designed for students studying Managerial Accounting at the under-graduate or post-graduate level.

The topics covered are - Variable, Absorption and Activity based systems.

You will learn the following -

1.  The fundamental application of variable and fixed costs under variable and absorption costing

2.  Increasing and decreasing closing stock levels under variable and absorption costing. Effect of changing stock levels to the Income statement and the Balance sheet 

3.  How to apply pre-determined recovery rates under absorption and variable costing systems

4.  How to reconcile absorption profit to absorption profit over two periods as well as variable to variable and absorption to variable profit

5.  Activity Based costing methodology and the application of manufacturing costs to cost drivers and to cost pools. Comparison of ABC profit to variable and absorption profit.

6.  How to read and answer examination questions. I will take you through several ABC questions with increased difficulty, teaching you how to integrate other managerial accounting topics into ABC, variable costing and absorption costing.

Who this course is for:
  • Undergraduate and post-graduate students
Course content
Expand all 8 lectures 03:41:06
+ Variable and Absorption costing
5 lectures 02:07:53

This first video will teach you the fundamental application of variable and fixed costs under variable and absorption costing.

Preview 13:03

Video 2 will teach you how to deal with increasing and decreasing closing stock levels under both variable and absorption costing. You will also learn how to address the effect on the Income statement and the Balance sheet to changes in stock levels.

Change in closing stock levels and effect on the Income statement.
20:14

Video 3 is on pre-determined recovery rates. You will learn how to apply fixed costs to production and how to adjust the income statement by the under or over recovery of fixed costs.

Pre-determined recovery rates under Absorption costing.
16:23

Video 4 is on the allocation of fixed cost to the closing stock using actual, pre-determined and standard costing. We will also compare the variable income statement to the absorption costing income statement.

Analysis of different valuation methods for closing stock.
35:00

Video 5 will teach you how to reconcile absorption profit to absorption profit over 2 periods as well as variable to variable and absorption to variable profit. Finally you will learn how variable costing relates to CVP.

Reconciliation methods for Variable and Absorption costing
43:13
+ Activity Based costing.
3 lectures 01:33:13

Video 6 - Activity Based costing. I will teach you the ABC methodology and take you through a detailed example teaching you how apply cost drivers to cost pools and thereafter allocate to the products. We will also compare ABC profit to variable and absorption profit.

Developing the ABC model.
28:02

Video 7 will take you through two examples to illustrate and apply ABC principles. One of the examples is a CIMA past question.

ABC principles illustrated.
24:15

Video 8 is about complexity. You will learn how to deal with and answer tutorial / examination questions that carry a higher degree of difficulty and integrate other topics.

Illustrative examples
40:56