ICSAN Management Accounting Practice Questions - ICSAN Professional Programme I - Management Accounting Exam

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A manufacturing firm in Lagos has the following output and total costs for two recent months: Month 1 (10,000 units: ₦250,000 total cost); Month 2 (15,000 units: ₦325,000 total cost). Using the high-low method, what is the estimated total cost for a month where 12,000 units are produced?

₦280,000 ₦270,000 ₦290,000 ₦300,000

Correct Answer:

₦280,000

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