Page 93 - F2 - MA Integrated Workbook STUDENT 2018-19
P. 93

Cost classification







                  Test your understanding 9





                   (b) and (c) are stepped costs – the total expenditure on these costs remains
                   constant for a range of activity levels until a critical activity level is reached.  At
                   this point, the cost increase to a new level and then remains constant for a
                   further range of activity levels.








                  Test your understanding 10





                   $10,000

                   $4,000 + ($2 × 3,000) = $10,000












































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