Activity-Based Costing (ABC) - The Super Basics

For more info on Tabaldi's support courses for MAC2601 and MAC3701, visit: www.tabaldi.org/support-for-b...
In this session, we chat about the super basics of Activity-Based Costing (ABC). We also work through an activity-based costing example and discuss examination technique.

[@princessdianahermann9806]

Mr Francois explained this topic amazingly, as a distance student I do a lot of self study and this was so helpful.🙏✨

[@TabaldiEducation]

Thanks so much! :)

[@branten123]

This is way much better than the way it was explained in class.
Thank you very much sir.

[@TabaldiEducation]

Thanks for the feedback, Bob!

[@nqobilengcobo7400]

Well explained, I'm happy as I prepare for my exams

[@youcanruntoo]

Thanks, Nqobile! Good luck with your exams!

[@ndasilwohendabundje487]

Great tutorial
Understanding the why is soo important, really helped determine when it would be appropriate to apply ABC.
Thank you 🙏🏾

[@TabaldiEducation]

I am so glad to hear that, Ndasilwohenda!

[@busisakunene527]

This is very helpful thank you. The pens example is fantastic😂

[@TabaldiEducation]

Hi Busisa. I am so glad to hear that! All the best

[@leratomatlala9716]

Thanks, this helps

[@TabaldiEducation]

I am so happy to hear that, Lerato!

[@Knowledge_Nuggies]

What do you mean with "budgeted units" in the context of the pre-determined OH rate? Do you mean all units budgeted to be produced, e.g. 500 units of product A, 200 units of product B and 300 units of product C, totalling up to 1000 budgeted units. Given an OH bucket of $10k that would mean a rate of $10k/1k units=$10 per unit and thus $5k for product A etc.?

[@TabaldiEducation]

Hi Jordan. That is correct. If units is the allocation basis, then you would divide the total budgeted OHs by the total no. of units (i.e. 1000 in your example).