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Cost Accounting

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(Querist)
08 October 2009 Sir, The Total cost for producing 10 items is Rs 15/- and that for producing 15 items is Rs 20/-, then what is the fixed cost.
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CA SIDHARTH HIRALAL PATNI

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CA SIDHARTH HIRALAL PATNI (Expert)
08 October 2009 Rs.5.

Go by variable cost formula
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Manmohan ACA, CS

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Manmohan ACA, CS (Expert)
09 October 2009 Rs.5.
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Sreedhar Atchutuni ACA,GradCWA

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Sreedhar Atchutuni ACA,GradCWA (Expert)
09 October 2009 Diferrence in Total cost/Difference in units = Variable cost per unit.

V.Cost comes to Re.1 per unit.

Fixed cost is calculated as follows:

At 10 units = 15 - (10*1) = Rs.5
At 15 units = 20 - (15*1) = Rs.5
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Taranjit Singh

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Taranjit Singh (Expert)
09 October 2009 Accurately shown by Mr. Sreedhar. follow him ....
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Deepak Goel

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Deepak Goel (Expert)
10 October 2009 Agree with Mr. Sreedhar
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