PEV v PCR

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi guys & girls,

I am studying at a local college where the class is mixed into CAT & AAT students.

As CAT have only one exam for this subject and WE have two! I'm finding the PEV a lot harder!

Just wondering if anyone agrees with me that PEV is harder? Only 2 weeks to go!:shock:

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV v PCR

    I am too. Costing is my favourite and supposedly easier part of accounting but at the moment I'm really struggling to grasp the variances at the moment. The irratating thing is I used to be able to do them. Going to try and write them out until i can do it without looking them up. It's the overhead volume, capacity and efficieny I'm struggling with. Has anyone got a way of learning it easily? It's supposed to be a main topic for the exam but it is not covered in the BPP textbook! How?

    Does anyone else feel as though their brain is so full it is abbout to burst?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV v PCR

    there's a thread somewhere on this somewhere and I got this from it Many thanks to the clever person who worked out these mnumonics... whoever you may be....


    Overhead variances : -

    ABC (the alphabet)

    A ctual - B udget x absorb rate = C apacity

    SAE (Stamped addressed envelope)

    S tandard - A ctual x absorp rate = E fficiency

    SBV (Silly bloody variances)

    S tandard - B udget x absorb rate = V olume
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV v PCR

    I wouldn't say i'm good at variances but i'm getting more comfortable with them with more practice, but i would agree PEV seems harder then PCR. I have practiced variances and performance indicators quite a bit and not too stressed about it as u put more practice it makes more sense and there are still 2 weeks left.
    But i am worried about all the other stuff i.e. memos, index numbers, TQM, balance scorecard,etc.
    If u do well in variances and performance indicators, and if your bit sketchy on other stuff would that be enough to pass u?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV v PCR

    I agree with Bobby, whoever listed these mnumonics have saved me a great deal of time!

    The rest of the rymes were:-

    The "PURE AS" (OR "Pure as as" as it reads) method for materials and labour:-

    Price (material) Standard - Actual x Actual
    Useage (material) Standard - Actual x Standard
    Rate (labour) Standard - Actual x Actual
    Efficiency (labour) Standard - Actual x Standard

    Great way of remembering these variances!

    Thanks again whoever you are :D

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