MA Chapter 4 Questions Cost Classification and Behaviour

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1. darshan.69 says

   February 18, 2023 at 9:40 am

   question second.
   the variable cost (170000 – 135000)/(22000 – 16000)
   is 5.83 ig
   considering that the i got 163320 as my answer

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   • John Moffat says

     February 18, 2023 at 10:47 am

     5,000 of the increase in the total cost is due to the step-up in fixed costs, so only the rest of the difference is due to variable costs.
     You can find the workings by clicking on ‘review quiz’ after submitting your answers.

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     • darshan.69 says

       February 20, 2023 at 10:59 am

       thank you for your assistance
       got that.

     • John Moffat says

       February 20, 2023 at 4:37 pm

       You are welcome 🙂

2. babylyn says

   January 25, 2023 at 11:53 pm

   How was the total cost for 22000 units derived after find the variable cost per unit which is $5
   For Q3

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   • John Moffat says

     January 26, 2023 at 6:36 am

     The fixed cost must be the same at each level, and therefore the only difference between the total cost of 22,000 units and the total cost of 20,000 units must be the extra variable cost f the extra 2,000 units.

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