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high low method

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › high low method

  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • January 31, 2021 at 9:58 am #608649
    Avatartushargujral
    Participant
    • Topics: 66
    • Replies: 95
    • ☆☆

    sir i was attempting the quick practice question section on open tuition on highlow method and encountered with one doubt

    sir in question 2 need to ask, so whenever there is an increase in the fixed cost the variable cost decreases with the same amount

    January 31, 2021 at 2:24 pm #608675
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    The total cost is always the total variable cost plus the total fixed cost. Therefore if 5,000 of the increase in the total cost is due to an increase in fixed costs, then the increase in the variable cost must be the remainder.

    January 31, 2021 at 5:35 pm #608700
    Avatartushargujral
    Participant
    • Topics: 66
    • Replies: 95
    • ☆☆

    oh, yes sir thank you

    February 1, 2021 at 7:37 am #608721
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    You are welcome 🙂

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    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘high low method’ is closed to new replies.

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