CAN WE DISCUSS PEV YET?

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Can we discuss PEV yet?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    yes I think we can
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    people seem to have a lot of versions of whether to recommend the £5 or £10 what does everyone think?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    what did you put down
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    £5 based on revised net current asset return, what about you? Thinking I'm probably wrong
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    snap, that makes me feel better! I meant net asset return not current btw
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    Iput down the same for the same reason. I know that the gross profit margin and operating profit margin was better on the other one
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    I may be wrong, I recomended that the selling price should be increase to £10. Considering the sales volume of 360,0000 something units, the net profit percentage is'nt much.

    Lizy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    I put £10 as although the return on equity was better, and I got it as the only one better I felt too much of the liquidity had been tied up in additional stock and debtors which I thought wasn't a good thing?

    Not sure if it's right, felt ok in exam but starting to worry now and DFS tomorrow - starting to feel the strain!

    What did everyone else think?

    Scooby
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    I put £10 as well as the proffit was higher and sugessted that they try to increase sales. I forgot one of the formulas in the first task and i am now really worried that i have not passed. I could have kicked myself as I know them all and my mind went blank.
    Ang
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    I went with £5 based on better return on net assets because in the last paper the answer was to go with renting due to better ROCE
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    hi

    I went with £5 based on the return on net assets, not sure which is right. overall I found the paper ok but am worried not because if the majority seem to feel like that then surely there would be a higher pass mark, so ok might not be good enough!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    I put down £5 but noted that this was solely based on a better return on net assets and that if the price reduction in raw materials also applied to the £10 option the return would have improved for that too
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    that seems a good answer
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    I said £5 - because of the higher return on NA but also because actual profit was higher
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    how did you find the rest of the exam
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    alot of the stuff which was asked i was comfortable with - so i guess i was lucky - nice paper!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    what did you think of the seasonal variations and did you reconcile your cost of production
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    I wasn't sure on the seasonal variation - was going to add the variations on then divide by 4 but that gave £900 for the underlying cost - question b) said calculate the "increase" so i took them off to get £800

    My cost of production was fine - i just reconciled as i worked out the variances in part a)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    i answered £5 as well due to more efficient use of resources i.e. higher return on net assets that outweighs higher gross and operating profit. Long term benefit outweighs short term profit.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    I got the fixed overhead expense variance wrong first off but spotted my error from the reconciliation.

    I had £850 for the underlying cost for the seasonal variation.

    Can't remember anything much about the ratios but I think I was OK with them. I should be, ratios crop up in cash management and DFS too so I've revised them for three different units :)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    hi
    I recommended the £10 due to profit margin generated being higher - i reasoned for this being that most, if not all businesses main aim was to make profit so the highest profit generating one won???
    Bit worried cause eveyones reasoning about the £5 one sounds right too, i hope like someone else said that they mark this as any reasonable argument will do!
    Only have to wait until august to find out! :(
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CAN WE DISCUSS PEV YET?

    both can be right you just have to make a convincing awnser.

    i put £5 although margins were better for £10 we sold more of the £5 3 times more so that would equal more profit

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