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High Low Method Calculations

Forums › ACCA Forums › ACCA MA Management Accounting Forums › High Low Method Calculations

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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    Posts
  • July 30, 2014 at 4:59 pm #180120
    Christy
    Member
    • Topics: 3
    • Replies: 10
    • ☆

    I would like to know how to calculate high low methods when there is a stepped cost.

    Thanks

    July 30, 2014 at 9:50 pm #180146
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    Because the stepped cost is part of the fixed overhead cost, remove the amount of the step from the high observation (assuming that the production is above the step) and then carry out the high/low method as usual.

    August 1, 2014 at 7:05 pm #180433
    Christy
    Member
    • Topics: 3
    • Replies: 10
    • ☆

    Thanks

    August 2, 2014 at 5:55 am #180459
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    You are welcome 🙂

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