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

  • dumutrobadumutroba AAT Student, AATQB Posts: 265
    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
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