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high/low method

Forums › ACCA Forums › ACCA MA Management Accounting Forums › high/low method

  • This topic has 3 replies, 2 voices, and was last updated 14 years ago by AvatarArora.
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  • July 7, 2011 at 4:45 pm #49262
    AvatarArora
    Member
    • Topics: 9
    • Replies: 7
    • ☆

    It is very difficult to me do calculations in high/low method.pls help me.

    July 12, 2011 at 3:15 am #85838
    Avatarcuteleo110
    Participant
    • Topics: 6
    • Replies: 381
    • ☆☆☆

    it is most easy method to calculate the fixed cost/variable cost!
    at what step you feel difficulty?

    July 12, 2011 at 4:28 am #85839
    AvatarArora
    Member
    • Topics: 9
    • Replies: 7
    • ☆

    high/low method with changes in the variable cost per unit,for example:2003
    output total cost
    26 6566
    30 6510
    33 6800
    44 6985
    48 7380
    50 7310
    when output is 80 units or more,another factory unit must be rented and fixed costs therefore increase by 100%. Variable cost per unit is forecast to rise by 10% in 2004. Explain me pls.

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