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About behaviour cost
1.semi-variable cost(3 each)
2.stepped fixed cost(3)
(Examples of the above under the Travel Industry )
THANK YOU.
Yeah .
(1)Semi variable cost is a cost which included bothVariable cost and
Fixed costE.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 …
Kravine: Please do not answer in this forum because it is Ask the Tutor and you are not the tutor. (But please do help people in the other Paper F2 forum).
Afifa1997: Watch the free lectures on cost classification. The lectures are a complete free course for Paper F2 and cover everything needed to be able to pass the exam well.
I am certainly not going to give three examples of each for the travel industry – you should be able to think of ones yourself – because it is impossible to be asked for three examples for any industry in the exam!!!
I can only assume that you have been set this as a test – we do not do your homework for you
🙂
(and, again, it would be wasting time anyway given that it cannot be asked this way in the Paper F2 exam!)
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