[nizamsharaf]

you need to post the whole question, the tutor doesnt have the Revision Kit

[nizamsharaf]

Thank you! I have another one, if you dont mind.

Following relates to companies O/H cost

Time – Output – O/H cost – Price Index

2 years ago – 1000 – 3700 – 121
current year – 3000 – 13000 – 151

Use High Low technique, what is variable cost per unit expressed in current year prices.

Answer says 3700×151/121= O/H cost in current year price and the rest is standard H-L technique.

I was wondering why we use 151/121×3700. I know you explained it in the lecture but I had been using a longer method using linear equation because that was easy for me to understand. It made sense when the c/unit was involved but with total costs it isnt falling into place as much.

[nizamsharaf]

Thank you so much sathjyot for your insight and for responding!

The truth is always harsh! Has this been your experience so far?

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