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Jossii
Jossii 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

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  • anniebabe
    anniebabe 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.
  • reddwarf
    reddwarf 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?
  • Jossii
    Jossii 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 :)
  • anniebabe
    anniebabe Registered Posts: 595 Epic contributor 🐘
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    your welcome Jossii.
    Good Luck on Monday
    my exam is Thursday - PCR - not looking forward to it at all :/ but no point in worrying about it now.
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
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    May the gods of costing be with us all next week!

    Lots of luck all ...
  • anniebabe
    anniebabe Registered Posts: 595 Epic contributor 🐘
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    Yes defo, good luck everyone
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