Variable, Absorption and Activity Based Costing

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.