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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 11 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • July 30, 2014 at 4:59 pm #180120
    AvatarChristy
    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
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    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
    AvatarChristy
    Member
    • Topics: 3
    • Replies: 10
    • ☆

    Thanks

    August 2, 2014 at 5:55 am #180459
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
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