Absorption vs Variable Costing
AWARD WINNER - Training Category
This podcast explains the differences between the two approaches to measuring profit: Absorption vs Variable Costing. It will show examples as to what causes the differences in operating income when each approach is used, and which method gives a more useful number when it comes to making decisions. Absorption Costing assigns a share of FMOH to each unit, while Variable Costing expenses all FMOH as a period cost.
April 13th, 2008 at 3:37 pm
4 STARS
David Feeley’s podcast on the differences between variable and absorption costing earns itself four stars based on the quality of the lesson and the creative effort that went into putting this podcast together. I thoroughly enjoyed the comic relief brought on by using “Sponge” Bob as the icon for the absorption costing method. In addition, this podcast went beyond just teaching the mechanics of variable and absorption costing and included important lessons on the theory behind the concepts. In his explanation of the mechanics, Feeley does a great job illustrating how using variable and absorption costing can provide different results which will then affect the way in which manager’s operate. I was also impressed by how well-timed Feeley’s pictures were in regards to what he was speaking about at that moment. That demonstrates significant effort and attention to detail. I only wish that Feeley had slowed down his speaking a little to give the unknowledgeable listener time to process the information being presented. That said, given the time constraints and the topic at hand, I think Feeley does an impressive job presenting such a large and important topic in a clear and understandable way. Four stars!
April 14th, 2008 at 3:49 pm
4 Stars
David did not just jump into the different methods, he gave a little intro that I thought was a great way to catch the attention of the viewer. He also had a great use of pictures, and I liked the funny ending. The material itself was right on target too with how the book presented it. If I could add anything to the pod cast, I would add music in the background.
Overall, great job.