Pev

LEEDSBROOKIE
LEEDSBROOKIE Registered Posts: 1 New contributor 🐸
How did everyone find the PEV exam this morning?
And which machine did you recommend they purchase in section2?
Not a bad exam but alot more written work required than previous papers.
Roll on February and the results!!
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Comments

  • laurenw
    laurenw Registered Posts: 42 Regular contributor ⭐
    I thought the exam paper was quite tricky, especially the first section. Section 2 was much easier, more of what i was expecting.

    I chose to purchase machine 2, the higer cost machine but brought in more operating profit and increased your net assets.

    I thought the memo's were ok, fingers crossed that ive done enough in section 1 to pass :001_unsure:.
    Question 1.3 was tricky :thumbdown:. How did everyone else find it?
  • warrants
    warrants Registered Posts: 18 New contributor 🐸
    Agree about the written part today - I took 3hrs to finish it. Section 1 was quite tough, I hope I did enough to pass? It just wasnt what I was expecting?

    I recommended Machine 1, in Section 2. I wrote about a page of reasons why, just to try and justify it :001_smile: - overall I think Section 2 was ok, but Section very tough and long.
  • imeldabye
    imeldabye Registered Posts: 147 Dedicated contributor 🦉
    I thought it was horrid horrid horrid :(
    I think Section 1 was tricky but manageable, but I am sure I failed section 2. Maybe there is a tiny chance I will pass if they look at my workings.....
  • Cortez
    Cortez Registered Posts: 76 Regular contributor ⭐
    I thought it was alright. Section 1 was a little tricky at first but then I got the hang of it and it was fine.

    I recommended machine 2 as gave a better return on net assets and higher operating profit margin. I couldn't think of any reasons why you'd want to choose 1? At least not from what I calculated!

    In the first section where you did the reconciliation ... for actual cost of actual production did you take off the closing stock of 50,000 x 0.033? I did and got it to balance so pretty sure it was right but just checking.
  • sam123
    sam123 Registered Posts: 11 New contributor 🐸
    Yeah Cortez, i did the same as you with the stock for the actual cost of actual production and got it to reconcile. Because it wasn't stock of finished goods it was just materials that they didn't use in the production. Never seen a question like that before, hopes its alright.
  • Cortez
    Cortez Registered Posts: 76 Regular contributor ⭐
    sam123 wrote: »
    Yeah Cortez, i did the same as you with the stock for the actual cost of actual production and got it to reconcile. Because it wasn't stock of finished goods it was just materials that they didn't use in the production. Never seen a question like that before, hopes its alright.

    Ah that's good then, it should be fine.

    What about the question where you had to suggest reasons for the variances ... it said that there were 2 operators still training, pay rise still outstanding and old machines.

    I said:
    Favourable labour rate = pay rise
    Adverse efficiency = trainees
    Adverse material usage = old machines (old machines not working 100% may damage the material so there's wastage)

    I wasn't sure on the last two because I thought they might go the other way around .... old machines not working so quickly and trainees might waste the material :001_unsure:

    And for section 2 when you had to do the P&L and net assets for the two proposals ... for net assets was it literally just 935,500 (or w/e the figure they said net assets were at year end) + your profit figure? Didn't have to add in the cost of the machines or anything?
  • mustangsalli
    mustangsalli Registered Posts: 1 New contributor 🐸
    PEV Exam

    I have to agree with current post. This exam was horrid, horrid, horrid. The exam setters are evil. I couldn't remember how to do the index number question. Sure I have completely fluffed everything, dont feel confident about any of it. I suppose I shall to re-sit this exam for the fourth time next June. I'm sure one day I get an exam I can understand.:thumbdown::thumbdown:
  • chappy1987
    chappy1987 Registered Posts: 7 New contributor 🐸
    I Did Same Cortez With The Explanations Of The Variances.

    As For Section 1 I Wasn't Sure On The Bit Re Stock I Just Used The Figure It Said They Produced.
    Section 2 I Chose Machine 1. As I Understand Machine 2 Gave You A Mere £1,000 Extra Net Profit At An Expense Of £560,000 And The Return On Asset Was Increased By 0.05% Explained Why I Chose It In Great Detail So Hopefully Wont Be Marked Down Heavily On It.

    As For Assets I Put The 935k Plus The Profit For Year
  • Cortez
    Cortez Registered Posts: 76 Regular contributor ⭐
    chappy1987 wrote: »
    I Did Same Cortez With The Explanations Of The Variances.

    As For Section 1 I Wasn't Sure On The Bit Re Stock I Just Used The Figure It Said They Produced.
    Section 2 I Chose Machine 1. As I Understand Machine 2 Gave You A Mere £1,000 Extra Net Profit At An Expense Of £560,000 And The Return On Asset Was Increased By 0.05% Explained Why I Chose It In Great Detail So Hopefully Wont Be Marked Down Heavily On It.

    As For Assets I Put The 935k Plus The Profit For Year

    That's a good point actually, I didn't think of that.

    If the machines were going to last 10 years then that's only an extra £10k or so profit.

    I based my recommendation purely on the GP%, OP% and ROCE% :001_unsure:
  • Emma1708
    Emma1708 Registered Posts: 217 Dedicated contributor 🦉
    I think I have really screwed up. The first part was fine with the variances and reconciliation. But section 2 was horrible - I have added onto the net assets the profit and the value of the 8 machines after depreciation - It gave a net assets figure and said to add in the profits

    Also, the discounted cash flow - I couldnt remember anything about that - was that from ECR? I just made something up for that one!

    I recommended machine 1 which is probably wrong too

    Definitely going to fail :crying:
  • Yazi
    Yazi Registered Posts: 225 Dedicated contributor 🦉
    Reminder that we should not discuss exam papers and possible answers and content till all countries in later time zones have sat the exam.

    AAT usually remind students of this.
  • Yazi
    Yazi Registered Posts: 225 Dedicated contributor 🦉
    Sorry just seen the announcement that after 3pm is ok.
  • chappy1987
    chappy1987 Registered Posts: 7 New contributor 🐸
    Ive Never Heard Of That Discounted Cash Flow Anyone No What We Needed To Do?

    I Thought Id Done Quite Well But After Hearing What Other Students Have Done Starting To Have A Little Doubt.

    Yazi Aint Aat Papers Just For England And Wales Far As Am Aware Wales Are Same Time Zone As England Am Not 100% Sure Though.
  • Emma1708
    Emma1708 Registered Posts: 217 Dedicated contributor 🦉
    I thought Section 1 was a pig, totally different format to past papers, which were all a lot easier.

    Section 2 was OK, I said buy the second machine because although the initial outlay was more, and Year 1 profit margins were lower, it yielded savings on Labour and Admin costs over the ten year period.

    The question implied you should ignore the net book value of the machines in the net assets - because it stated that the net assets were 935500 + op profit - anyone else take this meaning from that part of the question?

    I did at first - but then changed my mind but then realised afterwards that there are no trick questions so it wouldnt say it like that if you had to work out the net book value (which I unfortunately did and added on)
  • 80sGuitarSolo
    80sGuitarSolo Registered Posts: 21 New contributor 🐸
    I thought Section 1 was a pig, totally different format to past papers, which were all a lot easier.

    Section 2 was OK, I said buy the second machine because although the initial outlay was more, and Year 1 profit margins were lower, it yielded savings on Labour and Admin costs over the ten year period.

    The question implied you should ignore the net book value of the machines in the net assets - because it stated that the net assets were 935500 + op profit - anyone else take this meaning from that part of the question?
  • Guns
    Guns Registered Posts: 4 New contributor 🐸
    Grrrr, i think i am rather positive on the exam, i definitly missed taking off the closing stock in task 1.1, but aside from that think it went well.

    For section 2 the questions were quite ambiguious especially when there was reference to the net assets, i dont see how you could make a correct decision without adding on the NBV of the new machinery. I chose machine 2, mainly becasue over time as the NBV decreases the ROCE will increase, also if there are more poor weather seasons the lower administation costs were a consideration as well.

    I think i did the rest ok, but again people need to remember that gettting little figres or formulas incorrect here and there dont neccessaraly mean that the exam is failed, as long as you can justtify your results in the memo's/reports even if they are not ideal you should be ok. I HOPE!!!
  • acky2106
    acky2106 Registered Posts: 52 Regular contributor ⭐
    I had the PEV this morning and agree with most of the comments on here in regards to the first part being harder than the second, in fact i ended up wasting far too much time on the first part. I unfortunatelt ran out of time on the second half! I completed the first section, completed the questions on the second half and reworked the P&L + Assets however, i ran out of time and could not recommend which machine etc.

    To summarise, i completed all of the data tasks and written andfeel confident these were correct but the very last section of the last question i had no time to do. Will that be a fail?

    Thanks.
  • joyride
    joyride Registered Posts: 62 Regular contributor ⭐
    It was totally disgusting! looks kije ill be doing PEV for the 10 millionth time in june :thumbdown:
  • Emma1708
    Emma1708 Registered Posts: 217 Dedicated contributor 🦉
    Also, my mind went completely blank with the index numbers? I dont want to say what I did incase it is ridiculous. Does anyone want to say what should have been the answers for those?
  • joyride
    joyride Registered Posts: 62 Regular contributor ⭐
    It was totally disgusting! looks like ill be doing PEV for the 10 millionth time in june :thumbdown:
  • joyride
    joyride Registered Posts: 62 Regular contributor ⭐
    Emma1708 wrote: »
    Also, my mind went completely blank with the index numbers? I dont want to say what I did incase it is ridiculous. Does anyone want to say what should have been the answers for those?

    I didn't do a thing cos I had no damn idea!!. I was even going over dec 2006 in my head to see if I could miraculously make some kind of connection with how they got their index numbers.:mad2:
  • joyride
    joyride Registered Posts: 62 Regular contributor ⭐
    What did you get for standard cost for actual and actual cost for actual?
  • joyride
    joyride Registered Posts: 62 Regular contributor ⭐
    Section 1 was the one i felt more confident about it was Section 2 I most feared. Today that all changed, section 1 was diabolical :crying:
  • lorraine
    lorraine Registered Posts: 404 Dedicated contributor 🦉
    on the question where you had to put the reconciliation of costs i couldnt get this to work out correctly, this was horrible, also i couldnt work out the last question in the indexing but i thought section 2 was okay, i cant help feeling that i failed! section one really threw me!!!!!the exam was awful!!!!
  • joyride
    joyride Registered Posts: 62 Regular contributor ⭐
    What variances did you all get?
  • muffymk
    muffymk Registered Posts: 3 New contributor 🐸
    Arrrgghhh

    It was a nightmare!! Teabags? I ask you!!

    well I think section 1 was worse than section 2. I chose machine 2 because of the percentages (wally).

    Anyway my indice percentage was 8. sumfing?


    Roll on PCR maybe I'll Have better luck with that

    Boo Hoo
  • lorraine
    lorraine Registered Posts: 404 Dedicated contributor 🦉
    where you had to make the new cost card what did you put, i had 15 pound for the materials, 2 pound for the labour cost and 2 pound for the fixed production overheads, with a total cost of 19 pound
  • Guns
    Guns Registered Posts: 4 New contributor 🐸
    I got £33 as well
  • Emma1708
    Emma1708 Registered Posts: 217 Dedicated contributor 🦉
    joyride wrote: »
    What did you get for standard cost for actual and actual cost for actual?

    I think standard was £386400 and actual was something like £389--- if I see someone elses figures I will remember what I had exactly
  • Emma1708
    Emma1708 Registered Posts: 217 Dedicated contributor 🦉
    lorraine wrote: »
    where you had to make the new cost card what did you put, i had 15 pound for the materials, 2 pound for the labour cost and 2 pound for the fixed production overheads, with a total cost of 19 pound

    I have definitely failed - I thought that bit I had done right but I had a total of £87!!

    I shouldnt read posts on here, it makes me feel even worse :crying:
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