This week’s topics
Absorption and Marginal Costing
- Classification of fixed and variable costs
- Contribution margin and break-even analysis
- Overhead apportionment and absorption rates
- Preparing comparative absorption and marginal costing statements for decision-making
- Absorption Costing vs Marginal Costing | Explained with Example
- Marginal vs Absorption Costing Simplified | for ACCA students | How to pass ACCA Exams
- Absorption Costing vs. Variable Costing
- Costing
What you will be able to do
- 3.1 Explain how absorption and marginal costing is used for decision-making.
- 4.1 Produce accurate absorption and marginal cost statements.
Activity
Start with this week’s 4 videos, then: Seminar, guided reading and a short written task: explain how absorption and marginal costing is used for decision-making.
Study materials
Videos
- Absorption Costing vs Marginal Costing | Explained with Example · YouTube · Counttuts · 32 min · for registered students
- Marginal vs Absorption Costing Simplified | for ACCA students | How to pass ACCA Exams · YouTube · Steve Willis ACCA · 15 min · for registered students
- Absorption Costing vs. Variable Costing · YouTube · Edspira · 9 min · for registered students
- Costing · Oak National Academy, Key Stage 4 (GCSE level) · for registered students
Further resources
- Principles of Accounting Vol. 2, ch. 6.5: Variable (marginal) versus absorption costing · PDF · OpenStax, textbook chapter; pp. 284–314 · for registered students
Materials marked “for registered students” open in the student portal, which is set up as soon as you receive final acceptance.
