AAT costing sample assessment Task 8 re classification of fixed/variable/stepped costs

Hello

Can anyone help with Q1.8 of the sample assessment. I am struggling to find how to answer the question from the text book... any help would be most appreciated. Don't know how to identify if the cost is stepped, variable or fixed.

Thank you!

Comments

  • chammy295chammy295 Posts: 4Registered
    Fixed costs stay the same no matter the output.

    Variable cost go up in line with output (up by the same amount)

    Stepped fixed costs will remain the same up to a certain output then the fixed costs rise ( i.e new factory or machinery needed for extra output)

    Hope that helps
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