🔴 Activity Based Costing Managerial Accounting Example (ABC Super Simplified)

Activity Based Costing Example In 3 Minutes

Activity Based Costing is different from traditional costing...

Traditional costing is easy because if often just divides some types of costs equally between different items.

These are usually costs which are a bit difficult to divide or allocate between products, such as electricity, telephone bills, internet usage, rent, salaries, and others.However, Activity Based Costing finds ways to divide or allocate these costs more proportionally or "fairly"...

...so that we can write down a higher cost for items or products which use more of the stuff related to costs.
For example, we might want to write down a higher electric power cost for burgers than for lemonades.

As a result, this might cause us to sell our burgers at a higher price than the lemonades, and the lemonades at a lower price than the burgers.

Of course, electric power is not the only cost in making burgers and lemonades. Therefore, we have to think about other costs as well before making our final pricing decisions.

See ya there!

[latnc]

When ur lecturer just reads off the slides that aren't even useful, this 2 minutes video saves me a lot of time

[bilalvlogs-]

What I don't understand, why simple things looks so complex and hard to learn when studying at the university. Why they use complicated terms for one simple meaning. I have wasted hours and days researching trying to understand something so simple. I have been following your channel for a while and just wanted to say thank you for your amazing videos, they played a big part in learning process at my Uni. Respect

[shotdre]

this video literally explained it with the quickness. im in my final year of finance and this helped alot to just nail it.

[jasminecoates]

Thank you so much! This is great! PLEASE keep creating videos for struggling accounting students or anyone who is curious. I love that it's simplified and makes me laugh a little! Finally a real person who can teach another in simple terms!

[SoulflowerLex]

I literally did a full hour lesson on ABC and was so lost, this 3 minute video literally made things so clear 🤦‍♀️

[citradewilestari]

Hi, I came here to find references for making my assignment regarding ABC, I asked permission to re-make videos like this. In advance thank you very much, this video really inspires me!

[Tsoi]

LOL.i was unable to understand ABC through out the entire freshman year until now.

[itsxiaoyue]

easiest explanation!! im so glad i found this video😭 thankyouuu

[prajeshtrivedi]

Man! Thanks alot!! My professor threw some big random words at me and I couldn`t understand a thing. This video is a beauty!!! <3

[suruthi]

I came here using our study material provided by our college. It had the link of your vedio. Have to accept u r better than my teacher in explaining the concept😂

[srinikitha]

Bro ....I seriously want you as my costing teacher

[silveranddrlove]

Miss u my teacher.. I hope ur videos help me in my MBA first semester

[xHeartMaxwell]

thanks.. been 4 years since i did this craps .. easy refreshment . I approve of this 3 mins !

[dylanrocksify]

The greatest channel to come to youtube

[yositasunintaboon]

i love the way you explain! clearly understand

[MBAbullshit]

@JadePinely glad you're headed there!

[nannndaaaaaaaa]

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[wendycress]

Amazing! I was super confused until now.

[AlaskaEsq]

Thanks for doing it in 3 minutes. The other videos are really excessive

[taxmamclasses]

The way of your explanation is easy to understand... And video editing also good and it is helpful.. 👍