AAT Level 4 Budgeting - Stepped Cost
Lewisadams1995
Registered Posts: 3
Hi,
Just pulling my hair out with this question if anyone doesn't mind helping:
I need to create an Alternative Scenario from my First Draft.
First draft figures:
Sales volume - 84,000
Sales Revenue - 504,000
Depreciation - 8,100
Alternative Scenario
Sales volume - 75,600
Sales Revenue - 476,280
Depreciation - 7200
Depreciation is a stepped cost, increasing at every 10,000 units.
How did they reach the depreciation figure of 7,200 ????
Thanks alot
Lewis
Just pulling my hair out with this question if anyone doesn't mind helping:
I need to create an Alternative Scenario from my First Draft.
First draft figures:
Sales volume - 84,000
Sales Revenue - 504,000
Depreciation - 8,100
Alternative Scenario
Sales volume - 75,600
Sales Revenue - 476,280
Depreciation - 7200
Depreciation is a stepped cost, increasing at every 10,000 units.
How did they reach the depreciation figure of 7,200 ????
Thanks alot
Lewis
0
Comments
-
In the first draft, sales volume is 84,000 units, so will step up at 90,000 units, or 9 lumps of 10,000 units. Depreciation for each lump of 10,000 is £8,100 divided by 9, that is £900 per step.
In the alternative scenario the sales volume is 75,600, that is up to 8 lumps of 10,000. So depreciation is 8 times £900 equals £7,200.6 -
Thank you very much for your help0
-
So glad you asked this question I too was struggling to figure out how they got 7200!! Easy when you know how!0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 325 NEW! Qualifications 2022
- 160 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 95 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 274 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 202 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