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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Quantitative analysis in budgeting (high-low method)

- This topic has 2 replies, 2 voices, and was last updated 7 years ago by John Moffat.

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- October 23, 2015 at 5:34 pm #278590
Hi sir

I watched the lecture related to this topic and while you did the example question and got the total cost equation as TC= 32500 + 75x.

This equation gives the total cost for the highest and lowest level of activity. However, when I use this equation to find the total cost of another activity level, say for example 400 units, the answer I get does not match to the cost given in the question

For 400 units, in the question, the cost is 65,000. But when I insert this into the equation,

32500+(400×75) = 62,500. Can you please explain?Thanks in advance

October 23, 2015 at 5:40 pm #278591Oh dear, I only watched part of the video. Sorry, I got it now

Heheh.October 23, 2015 at 7:37 pm #278616I am pleased you have now got it 🙂

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