brain dead now!

brain dead now!

OK Shaz<BR><BR>ABC = Activity Based Costing (not included in the new standards, so don't worry about it)<BR>TAC/MC is Total Absorption Cost/Marginal Cost (two "opposite" concepts. TAC is the cost of a unit including a share of the fixed costs whereas MC is the variable cost only of a unit)<BR>Stepped costs are costs that are fixed until a certain level of activity when they increase and are then fixed again. E.g. we rent a factory unit which is big enough to manufacture up to 2,000 units a month. The rent is therefore a fixed cost. But as soon as we want to manufacture more than 2000 units a month we need to rent the next door factory as well so our rent doubles - but is then fixed at the new level until we exceed 4000 units a month.<BR>This is not the same as the high-low method which is a way to split the fixed and variable components of semi-fixed costs.<BR><BR>Clear now<BR><BR>Graham Blott

brain dead now!

Hi Shaz.<BR><BR>ABC is activity based costing.<BR><BR>Absorption costing vs marginal costing<BR><BR>Stepped costs are where the costs remain the same until a certain point, then they 'step up', e.g. you might need a second warehouse, once production reaches a certain level.<BR><BR>High - low method is used to work out the fixed or variable cost element - you take the highest figures, subtract the lowest figures (i'm a bit hazy on this one)!<BR><BR>Hope this helps.<BR><BR>Scott. <BR><BR>P.S. it took me so long to type that in, Graham had already provided the answer.

brain dead now!

possibly, **************************** <BR><BR>And here i am......... about to sit the exam! (gotta sit both actually)<BR><BR>Actually feeling reasonably confident.<BR><BR>So fingers crossed that i pass as i want to sit the first tech paper (hopefully) in december!!<BR><BR><BR>

brain dead now!

Shush Shaz, or everyone will want one.<BR><BR>I remembered the name but forgot what you told me. Good luck next week.<BR><BR>Graham Blott