Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
High - Low Method of Cost Estimation
Now, cost estimation is based upon the relationship between past level and past cost of activity. Variable cost is based on the relationship between costs at the lowest level of activity and the highest level of activity. The difference in cost among low and high activity level is considered to be the net variable cost from that the unit variable cost can be computed by dividing it with the change in output level. This is shown underneath as:
"Total Variable Cost = Cost at high activity level - Cost at low activity level"
Hence,
Unit Variable cost = Variable cost/ Output Units
= (Cost at high level activity - cost at low level activity)/ (Units at high activity level - units at low activity level)
The variable cost per unit so estimated forms the 'b' of the straight line equation stated earlier. Via substituting 'b' into the equation, we can acquire 'a', the fixed cost.
contribution per unit 8 fixed cost=800.find B.E.P?
Describe the information about cost sheets? Ans) Cost sheet having of the direct and indirect expenses acquired in producing a given product and classifying the expenses acquire
The Cash Cycle: so as to deal with the problem of cash management we should have a concept about the flow of cash by a firm's accounts. The entire process of such cash flow is ide
Role of Cost Accounting in Business Management The system is a set of interdependent parts that together form a unitary whole such performs some functions. A number of sub sys
Goal Congruence - Behavioural Aspects of Standards A perfect variance analysis and standard costing system must enhance goal congruence between as: i. The goal of individua
A company produces three types of items. A single machine is used to produce the three items on a cyclical basis. The company has the policy that every item is produced once during
A small company employing around 25 people manufactures and sells anthropometric measuring equipment - equipment used mainly in hospitals to measure the height and other dimensions
Following figures are taken from annual budget of ABC manufacturers for the year 2013: Fixed factory overhead Rs. 4,000,000 Factory overhead absorption rate Rs. 70 per direct labor
Constant Gross Margin Rate This method assumes that every product contributes an equal percentage of gross profit for every shilling of sales. It works back from gross margin
Determine the Single Limiting Factor A company manufactures and sells three products as A, B and C. The unit cost and revenue structure for every product and its maximum forec
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd