CPD Course: The fundamentals of absorption and marginal costing

The Fundamentals of Absorption and Marginal Costing

The importance of accurate costing cannot be overstated. A variety of important decisions rely on the information from costing, ranging from how to price a product to whether to manufacture or purchase different components to whether to discontinue an underperforming product. Not only that but costing is also used to set budgets and to control costs in the business. As a finance professional, it’s vital that you are able to cost an organisation’s products or services accurately

In this course, you’ll learn about two key approaches to costing: absorption costing and marginal costing. Each provides different information about the cost of the product, making them invaluable in different situations. By understanding both, you’ll be prepared to recommend the right method at the right time. 

Provides 4 hours of CPD

What you’ll learn:

  • How to use absorption costing to calculate the full cost of production per unit of a product or service, allowing pricing decisions to be improved  
  • Two different methods for apportioning overhead costs so that you can allocate overheads to production cost centres fairly in different circumstances  
  • How to use marginal costing to calculate the cost of producing an additional unit of a product, informing production decisions
  • Why there are differences in profit under marginal and absorption costing so that you can reconcile the figures and communicate the reasons for the differences
  • The key advantages and disadvantages of each costing system, giving you the knowledge you need to select the most appropriate system to use
Applying what you learn:
This course will be accompanied by questions that will allow you to practise applying what you have learnt, so you will be ready to use your knowledge and skills in your own workplace with confidence!

What’s included in the course?


  • Thoroughly explores the concepts, theories and models for this topic
  • The content is professionally explained by our expert tutors alongside a visual presentation
  • Come with downloadable audio files so you can listen to the content offline and on the go


  • Full coverage of the video content using engaging and easy-to-follow language
  • A range of examples to show you how these concepts might apply to real-life situations, e.g. in finance
  • A practical exercise for each module based on the subject’s application in a finance team

Practice questions

  • A series of questions designed to test your understanding of what you’ve learnt on the course
  • Designed to get you to apply what you’ve learned to scenarios and commit the theory to memory

Presentation slides

  • The visual presentation from the video can be accessed for note-taking and for browsing alongside the video or audio download
  • Can be viewed as still slides or in an interactive format to move around the screen

Purchasing the course

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Astranti CPD Course:
The Fundamentals of Absorption and Marginal Costing


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