Recession

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PGM
PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
Wonder if the bad economy will be reflected in future exam questions?

Could be something to prepare for in future exams...

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  • Baggybooks
    Baggybooks Registered Posts: 522 Epic contributor 🐘
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    In which papers and levels do you think it might appear?
  • stevo1
    stevo1 Registered Posts: 27 Regular contributor ⭐
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    I remember in my PEV exam (which I passed) last year writing loads about the impact of weather cycles on tea leave harvesting. In much the same way as weather effects that industry, the economic downturn effects the local electrical store (for example) so I don't see why this topic couldn't be used in an exam??
  • welshwizard
    welshwizard Registered Posts: 465 Dedicated contributor 🦉
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    Econoimc conditions such as high interest rates influence accounting decisions, so does the chances of getting a loan based solely sales when there is a downturn in sales. Financial implications for business could mean workforce needs to be reduced (causing slow down in other industries - house bulding, estate agents, retail) different suppliers being sought, minimising costs by investment in machinery to automate production instead of being labour intensive (again reducing workforce). I could go on for hours about how economic conditions affect the accountant - but suffice to say, the AAT should (if they are prudent) address these recession issues in all the management accounting papers PEV, PCR, ECR. I think people need to see the wider effect of this recession - so many young people have never experienced the full force of recession and it culd come as quite a shock to them. AT least, if the AAT address it, the students will have an understanding of the situation.
  • Baggybooks
    Baggybooks Registered Posts: 522 Epic contributor 🐘
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    I think the life-cycle of an exam paper is almost two years - so it may be over by then!
  • farmergiles
    farmergiles Registered Posts: 1,693 Beyond epic contributor 🧙‍♂️
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    RANT...If the BOE reduce the interest rates(like the Fed did) then it will be over by then. But , as we all know, the BOE is very timid and not likely to reduce the rates, thereby condeming this country to a long drawn out recession!...rant over!
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
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    Baggybooks wrote: »
    In which papers and levels do you think it might appear?

    I wouldn't try to be so specific. More about being prudent and trying to prepare for something that could come up..
  • Baggybooks
    Baggybooks Registered Posts: 522 Epic contributor 🐘
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    Looking at overheads and how they still have to be funded when turnover drops, perhaps?
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