[kravine]

hello maria ,

yes your absolutely right .. its just practice but with understanding comes the bigger picture of ANY lesson maria .. actually absorption and marginal costing are chapters which are not much hard , if you have problems with those chapters just tell me in which area can I help you ?

thank you …

[kravine]

Hello Maria

Your absolutely right dear , it’s just practise but with a propER understanding we will get the bigger picture. No matter which lesson it concerns ..

And without a proper understanding of any lesson don’t go for mocks . Do go for mocks after you have an proper knowledge of all lessons in FMA .

Anyway Maria..
What’s the problem you have in absorption nd marginal costing

Thank you

[kravine]

Yeah .
(1)Semi variable cost is a cost which included both

Variable cost and
Fixed cost

E.g
The drivers fee
(It could be fixed
Or it could be variable )
So a combination of variable and fixed is
Semi variable cost ….

(2)
Stepped fixed cost.

This is a cost which is charged upto a certain level .

For example
Suppose or assume that,

Only 3 supervisors are to supervise 1 factory
And you can’t bring in more supervisors
Because that’s the limit .(say)

So to bring in more supervisors you should probably look out for another factory to bring in another set of three supervisors or( more )depending on the company ..

So e.g of stepped fixed costs are

Supervisors
Factories
Products produced in one factory
And many many more ..

Hope you understood afifa …

[Author]

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