# Mac

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Registered Posts: 13 New contributor 🐸
I seem to be having the same problem every time, not getting my head around the same items, eg Fixed costs & variiable costs, and also the variances.
Does anyone know of a simplified way of remembering how to work these out... Grateful for any help

• Registered Posts: 595 Epic contributor 🐘
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Hi Jossii

Fixed /Variable costs, I always use the high low method to work this out, and its pretty simple when the penny drops.
which books are you using?
£ Units
high £90000 25000
low £81000 20000
diff £9000 5000

always divide the money by the units
£9000/5000 £1.80 per unit variable

variable cost is £1.80 x 20000 units =£36000
the fixed element is the difference between the £36000 and the £81000

Fixed element is £45000

£45000 plus £36000 should come back to £81000

Does this help? its the same method you should have used for ECR.

I am struggling with the Section 1 part of the PCR exam paper not looking forward to sitting this exam at all.
• Registered Posts: 528 Epic contributor 🐘
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I found that the variances stuck with lots of practice, can you get hold of more exercises somewhere?
• Registered Posts: 13 New contributor 🐸
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Anniebabe

Many many thanks for that... have practiced lots, now it seems to have stuck... just in the nick of time me thinks.
Hopefully this MAC exam on monday will be the one I pass..
Fingers crossed!

Hope your exam goes well.... again, many Thanks
• Registered Posts: 595 Epic contributor 🐘
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