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Bpp practice & revision kit / question 15.2 high low method – flex bugdeting

Forums › ACCA Forums › ACCA MA Management Accounting Forums › Bpp practice & revision kit / question 15.2 high low method – flex bugdeting

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  • November 3, 2012 at 6:57 pm #54919
    periqueta
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    Hi!
    I hope someone can help me with a problem with this exercise.
    Why I should take out direct material cost when applying the high low method to get the variable cost per unit?
    Many thanks in advance

    November 3, 2012 at 8:24 pm #106169
    periqueta
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    Oh, I think I have my own answer. It is because the direct material costs are 100% variable costs. We use the high low method to split the semi-variable cost.

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