need help with f2

This topic contains 7 replies, has 5 voices, and was last updated by avatar raymint85 2 years, 9 months ago. This post has been viewed 68 times

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  • Profile photo of tajrinjahan
    tajrinjahan
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    high/low method with stepped fixed costs


    Profile photo of John Moffat
    John Moffat
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    Take the difference between the total costs for the highest and lowest.

    If their is a step-up in fixed costs between these levels, then part of the extra cost is the step-up, so subtract it.

    What is left is the variable cost of the extra units, so divide this figure by the difference in units between the highest and lowest – this is the variable cost per unit.


    Profile photo of tajrinjahan
    tajrinjahan
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    thnx ALOT der!


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    Anonymous
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    i need help on high/low method with stepped fixed costs :( i did many examples but i cant understand, and am using kaplan study materials, self study !! its just hard, m stuck!
    please i need help


    Profile photo of John Moffat
    John Moffat
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    Have you read the answer to tajrinjahan?


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    Anonymous
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    yes i did ! but i did not get the concept yet


    Profile photo of Plen
    Plen
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    @tajrinjahan and @herbiby:
    Did you watch the Opentuition lecture on high-low including the stepped costs?? Here is a link to the lecture http://opentuition.com/acca/f2/acca-f2-cost-classification-part-b/ watch it and then practice more questions from exam kit and past question papers


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    raymint85
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    Hi guys, i need some help! currently i’m doing my F2 and i’m struggling at process costing, especially in equivalent unit. Basically, I get stuck with a question where they ask you to find out about the number of units started and completed during the period etc..I’m fine when they ask to find out about the closing WIP and so on, but i find it difficult when there’s question about opening & closing WIP. Can someone kindly help to show me an easier method to understand this particular part of this topic. Thank you so much!

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