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fixed cost in multi product environment

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › fixed cost in multi product environment

  • This topic has 1 reply, 2 voices, and was last updated 13 years ago by John Moffat.
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  • October 10, 2012 at 7:13 am #54671
    wahab11
    Member
    • Topics: 30
    • Replies: 15
    • ☆

    In multi product environment,while calculating break even point, for product mix and individual products, which fixed costs should we use :
    a: product specific
    b: other general fixed costs
    c: both
    I mean are product specific fixed costs treated as variable costs?

    October 10, 2012 at 8:07 pm #105510
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54758
    • ☆☆☆☆☆

    If you are talking about CVP analysis (and drawing the PV chart) then you should use total fixed costs.

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