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.
Managers need financial information to help them make decisions, communicate important information about their organization, and demonstrate fiscal responsibility to stakeholders.
The basic principles of standard costing and variance analysis may be adapted to the needs of relatively new methods of accounting such as activity-based cost
7. The Isabelle Corporation rents prom dresses in its stores across the southern United States. It has just issued a five-year, zero-coupon corporate bond at a price of $74. You ha
The sales revenue line demonstrates the amount of sales earned throughout the different level of activities. It can be observed that between zero and somewhere between activity B a
BUDGET A BUDGET is a quantitative expression of a business plan for a particular future period, generally a year. BUDGET is the planned future course of action. BUDGET
A forecasted increase in metal prices has encouraged the ABC Resource Company to consider the expansion of the capacity in one of its mine operations in Northern Ontario. For this
Overhead Absorption Absorption of overheads refers to the sharing out of overhead costs to the some cost centers such used the overheads. This is utilized when the overheads c
how to prepare separate accounts for each process given having been givent normal loss,output,overhead and output passes to next process
what are importance of cost classification
Pritchard Company manufactures a product that has a variable cost of $30 per unit. Fixed costs total $1,500,000, allocated on the basis of the number of units produced. Selling pri
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