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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › stepped fixed cost
Hello Sir,
Do guide us that how can we calculate stepped fixed cost ?
Thanks
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.
