high/low method with stepped fixed costs
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.
thnx ALOT der!
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
Have you read the answer to tajrinjahan?
yes i did ! but i did not get the concept yet
@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
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!
You must be logged in to reply to this topic.