Stepped Costs - PCR

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
For some reason I'm having a block on how to calculate the stepped costs from the questions given.

I understand that the cost increases at certain levels of activity, but somehow can't get it into my head how to do the actual calcs.

Any help please?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Stepped Costs - PCR

    Hi,

    Example if there has to be 1 teacher to 6 children at a school and a teacher costs £10000, and there are 25 children then you:

    25/6 = 4.16 teachers required

    Therefore this is more than 4 so it is:

    5 x £10000 = £50,000.

    Hope this helps

    Stacey

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Stepped Costs - PCR

    Thanks Stacey. I was not taking the the fraction up to the next whole number for the calculation, thus getting an incorrect £ value for the answer.

    Amazing how blinkered one's thinking becomes!!!!
    Scary really.

    Good luck.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Stepped Costs - PCR

    This came up in the DEC 04 PCR paper, have a look at that. Look at the notes above task 2.1

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Stepped Costs - PCR

    Thanks Dean.

    I got it right now.

    I'm looking for answers to Jun 03 and Dec 02 pls?

    Any suggestions?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Stepped Costs - PCR

    I think I have the answers to the Dec 02 paper, what do you need?

    Regards

    Dean

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