Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company has recorded the following total costs during the last 5 months. Month Output volume (units) Total costs ($) 1 150 1,120 2 100

A company has recorded the following total costs during the last 5 months. Month Output volume (units) Total costs ($) 1 150 1,120 2 100 1,000 3 160 1,210 4 200 1,500 5 180 1,410 Required (1) Use the high-low method to calculate the total costs that should be expected in Month 6, if output of this month is 250 units. (5 marks) (2) Discuss the limitations of the High-low method in calculating fixed and variable costs.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Pauline Weetman

8th Edition

129224447X, 9781292244471

More Books

Students also viewed these Accounting questions