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ACCA FINAL ASSESSMENT.. PLZZ SOLVE THIS

Forums › ACCA Forums › ACCA MA Management Accounting Forums › ACCA FINAL ASSESSMENT.. PLZZ SOLVE THIS

  • This topic has 0 replies, 1 voice, and was last updated 13 years ago by arvind0708.
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  • June 12, 2012 at 4:37 pm #53388
    arvind0708
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    • Topics: 39
    • Replies: 5
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    (8) Binsey Ltd uses regression analysis to forecast future monthly costs. Using historic
    information the accountant has produced the following equation which will be used
    to predict future monthly costs:
    TC = 4Q + 600
    Where Q is the number of units produced each month.
    Which of the following statements is correct?
    A Variable costs = $600 per unit, Fixed costs = $400 per month
    B Annual fixed costs = $48,000
    C Annual fixed costs = $7,200
    D Variable costs = $40 per unit, Fixed costs = $7,200 per month

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