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stepped fixed cost

((deleted)8y ago
Hello Sir, Do guide us that how can we calculate stepped fixed cost ? Thanks
John MoffatJohn MoffatTutor8y ago#1
You use the high low method in the normal way, but if one of the levels is over the limit for the step-up in the fixed cost then the difference in the total costs is partly due to the step-up. So subtract the extra fixed cost from the difference - the remainder is the extra variable cost of the extra units. Then continue using the normal logic.
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