F2 Chapter 4 Questions
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5/5 馃檪
salam…..
done the quiz but still have a problem with question 2, need more explanation please
Did you watch the lectures before attempting the test?
You will have to say which part of the explanation that appears on the screen that you are not clear about.
4/5 AGAIN
Good
Very amazing l got
5/5
Great 馃檪
It is important to Note before starting the solution that the Highest activity level is above 17,500 units which would mean that total costs at this activity level includes step up of fixed costs of $5,000. I proceeded to work the solution without taking this into consideration and did not get any of the answers given, so I chose the answer which was closest to the given choices, which was wrong. After reviewing the solution I still could not see why I could not figure this out, then I realized that the highest activity is over 17,500. Hope this helps my fellow students.
thanks a lot, really helped a lot 馃檪
Got a 5 on 5
Very good 馃檪
q2: why increase in variable cost is $30 000 (difference in total costs 170000-135000 minus $5000 ?)
Because 5,000 of the increase in the total cost is due to the extra fixed costs.
I felt well
easy to understand
Good 馃檪
Hi , there im unable to understand question 2
The pop-up solution (after you submit your answer) explains what to do.
You will have to say which part of the question or answer is not clear to you, then I will explain it.
(I assume that you have watched the free lecture on the high-low method before attempting the test.)
Can you explain on question 5?
You need to watch my free lectures on chapter 4 of our free lecture notes, because I explain semi-variable and stepped fixed costs in detail in this lecture (and I cannot type out all my lectures here 馃檪 )
(The lectures are a complete free course for Paper F2 and cover everything needed to be able to pass Paper F2 well).
hi. there’s something i’m unable to understand. question 3.
it seems that another method is being used here..and mine is actually wrong.
why the answer is not so?
135000-110000/25000-20000 which equals to 5 (variable cost).
the next step for me is : 135000-(5*25000)=10000.(fixed cost)
and therefore, total cost=135000+(10000*5)=185000
logically, i know that the total costs for 22000 units should be lower than that of the 25000 units which is $135000. but i cant fathom where is the mistake.
please explain. 馃檨
Since the variable cost is $5 per unit, the total variable cost of 22,000 units is $110,000
The fixed cost is $10,000
Therefore the total cost is $120,000
Clear. thank u.
You are welcome 馃檪
So helpful
Got 4
Well done 馃檪