costing_fixed cost

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shobhna bharti (Querist)

25 July 2016 hi evry1, in d que, when fixed cost is p.u given i.e, 5 p.u for 5000 units & que asks costing for another units say 8000 units. then for 8000units what vl be totalfixed cost?? 5×8000 or 5×5000??? I'm confuse plz clear this coz smtyms que takes @ prev. units & smtyms on asked units. pl clarify wid concept

Amol S Joglekar

Amol S Joglekar (Expert)

25 July 2016 This is a TYPICAL way of testing the knowledge of student....I know it is ridiculous but as of now there is no other way
See as per the definition of the term "Fixed Cost " ...it is the cost which remains fixed irrespective of number of units produced......So in the example you cited.....the fixed cost would be 25,000 irrespective of number of units produced be 5000 or 8000 or even zero.....Ok? (And one more suggestion....STOP using abbrevations...like every1, plz, coz, wid etc...This will BADLY effect your marks in the CA exam)

shobhna bharti

shobhna bharti (Querist)

25 July 2016 ok , thanks for your advise.

Amol S Joglekar

Amol S Joglekar (Expert)

25 July 2016 you are most welcome.

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