Stepped Costs
katieen1
Registered Posts: 6 New contributor 🐸
I am currently revising for the budgeting cba and I am struggling to understand how to calculate stepped costs.
Tha question says that the budget for equipment hire is stepped, increasing at every 15,000 units of monthly production.
On the monthly operating statement is has:
Budget is 76,000 units and £48,000
Actual is 72,000 units and £42,000
Flexed budget is 72,000 units
Please could someone explain this for me???? I have read the other discussions on stepped costs but I still cannot relate it to this question as I am completely baffled!!
Thank you for your help.
Katie
Tha question says that the budget for equipment hire is stepped, increasing at every 15,000 units of monthly production.
On the monthly operating statement is has:
Budget is 76,000 units and £48,000
Actual is 72,000 units and £42,000
Flexed budget is 72,000 units
Please could someone explain this for me???? I have read the other discussions on stepped costs but I still cannot relate it to this question as I am completely baffled!!
Thank you for your help.
Katie
0
Comments
-
does it indicate the cost per 15,000?0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 322 NEW! Qualifications 2022
- 159 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 93 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 274 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 201 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership