PEV Help!!!!!!!!!

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:26AM in AAT student discussion
Hi,

Can someone please help me, I really struggle with costing and somehow managed to pass PCR but failed PEV, I am doing resits in December has anyone got any good notes I could have on PEV please. My e-mail address is cheryl.harrison@wilko.co.uk :lol:

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Help!!!!!!!!!

    Hi

    On what bits are you struggling
    Eva :D
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Help!!!!!!!!!

    Im in same boat, spent hours yesterday going over variances but none will stick in my head, keep getting the units/ hrs mixed up. No good at learning formula's better with understanding why IM doing something.
    Am about ready to pack in, as seems to take all my time. Hate costing would never use it anyway.
    Would be good idea if they had seperate forum for notes etc instead of everyone emailing when thread put up
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Help!!!!!!!!!

    Hi

    Hope this helps with regards to variances, anything else just post on forum:-
    "PURE AS" (or "Pure as as" as it reads) method for materials and labour: -

    same each time

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

    and for Overhead variances : -

    ABC (the alphabet) Actual - Budget x absorb rate = Capacity
    SAE (Stamped addressed envelope) Standard - Actual x absorp rate = Efficiency
    SBV (Silly bloody variances) Standard - Budget x absorb rate = Volume

    I found that silly rhymes made it easier to remember and then I could start to understand what the point of it was.
    Best wishes
    Eva :D
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Help!!!!!!!!!

    Sorry for the late reply, I struggle with varience reconciliations and seasonal variations can you help? its usually tasks 1.2 on the exam I can't do. :)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Help!!!!!!!!!

    Hi

    Seasonal variations are not my forte and didn't study much on it. It can expressed it various forms and I was lucky in June that all you had to do was add the variance to the sales figure. In very basic terms (which is my limit) it is adjusting the sales figure to take account of blips in the sales such as Christmas or advertising campaign so that you obtain a true sales figure so that you can see if the company is having problems with sales or you are selling well.

    The reconciliation is like doing a bank reconciliation statement. You start off with either the actual cost of production or the std cost of actual production and then calculate your variances (as above) and either add them or take them away. Depending on which one you start with will depend on how you treat your variances.

    Hope this helps
    Eva :D
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Help!!!!!!!!!

    Thanks for the acronyms for variances - makes much more sense and I at last feel I may have found a way to remember them. Betsy :lol:

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