determination of Stepped fixed cost

Hi, can any body answer my following question please.

How can I determine cost of classification if number of units and cost of units given there as example given below:
2000 units 4000 units 5000 units 8000 units

£25 £12.50 £10 £6.25

All cost per unit

Comments

  • dumutroba
    dumutroba Registered Posts: 262
    edited October 2018
    This is a fixed cost, a cost that stays the same and does not change with the level of activity

    All level of production x respective cost = 50000
    2000x25=50000
    4000x12.50=50000
    Etc.

    You apply the same method to determine other cost behaviours. For that you need to be aware of their definitions
    AAT Level 2. 2018 Distinction
    AAT Level 3. 2018 Distinction
    AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
    Xero Certified Advisor
Privacy Policy