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Standard costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Standard costing

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • January 25, 2021 at 7:55 am #607848
    Priyanka19
    Participant
    • Topics: 32
    • Replies: 20
    • ☆☆

    Sir how do we calculate standard total variable production cost per unit

    January 25, 2021 at 9:44 am #607893
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    That depends on the information given in the question.

    The total variable cost is the total of each of the budgeted variable costs i.e. materials, about, and variable overheads.

    Alternatively it could be a question where you are given the total cost (which is fixed and variable) for various levels of production. In this case you use the high-low method to calculate the fixed cost and the variable cost per unit.

    Have you actually watched all of my free lectures? They are a complete free course and cover everything needed to be able to pass the exam well. You cannot pass the exam without studying all the topics first – if you are not watching my lectures for any reason then you need to buy a Study Text from one of the ACCA Approved Publishers and study from there.

    However you choose to study, then once you have studied all of the topics you need to buy a Revision Kit from one of the ACCA Approved Publishers. It is full of exam standard questions for practice, and practice is essential to passing the exam. However there is no point in practicing questions until you have studied all of the topics.

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