## Total materials variance

Let’s start by having a look at the direct material standard costs that we’re going to use for our example. Budget data Direct materials: 1 metre @ £5 per metre …

## Forecasting using a scatter graph

Can you accurately predict future costs by looking at previous costs? Or future sales by examining past sales? The next few steps build on what you learned on costing behaviour …

## High-low: how to calculate fixed and variable costs

In the real world, even fixed costs can change during a year if a supplier puts up their prices. Likewise, the cost per unit of variable costs might also change. …

## Identifying fixed and variable costs

It’s all very well being able to recognise the different types of costs by looking at a graph – but how do you identify them in real life, just from …

## Flexed budget examples

Let’s look at a couple of examples to show the difference between fixed, flexible and flexed budgets. In the video the following table is shown:   Budget Actual Sales volume …

## Fixed, flexed, flexible: what’s the difference?

Most of us will have a weekly budget for food shopping, even if we keep it in our head rather than writing it down. But what happens if a relative …