MAC Paper - 1st dec

Moodley

Hello everyone

A few days before the MAC paper! You guys ready? I failed jun 08 so i gotta pass 2nd time around especially since its my last aat paper.

im struggling with Performance indicators, Jun 07 paper.
what the formula for: as they are not in my notes or textbk
1. advertising costs as a % of turnover
2. Fixed overheads as a percentage of turnover
3. Stock turnover
4. Return of Net Assets (RONA/RONE)

also does anyone have an idea if flexi budgets will come out? or any other tips from tutors as i did not take class again for this module...

thnx

Lizzim

Hi there,

Am also taking MAC on monday - am on a break from my revision

1) Advertising costs divided by turnover (or revenue) x 100
2) Fixed overheads divided by turnover (or revenue) x 100
3) Have mental block but think it might be Inventories divided by COS
4) Turnover (or revenue) divided by net assets

Good luck for Monday!

*Sarah*

I sat MAC last sitting too and failed so I am hoping to pass on Monday. I always forget the gearing ratio, anyone remember what it is?

I seem to be ok on most of the other parts. At least if a service industry comes up again we will know what to do!!

MattW

I've got MAC on Monday as well (as well as ECR on same day )

Agree with all, but i've also noticed stock turnover can also be:

Stock or Inventories over Materials Purchased, which is part of the CoS.

Also from my Kaplan mock paper I've noticed a question on linking net profit margin and asset turnover and how those two come together to create the RONE (or ROCE as I know it!), i.e:

ROCE = (Net profit = Net Profit/Sales) x (Asset Turnover = Sales/Net Assets)

which is the same as, once you get rid of the "Sales" by elimination:

ROCE = Net Profit/Net Assets

Another thing that used to confuse me, which I'll add just incase anyone else has the same prob - net assets is the same as capital employed.

Capital employed can either be defined as the net assets (i.e the top half of the balance sheet: Total assets - Total Liabilites)

or

Shareholder funds plus long term loans (which is the second half of the balance sheet, as the first and second parts must balance).

Hope this helps and good luck! :thumbup1:

Matt

King of the Mountains

Return on net assets Lizzim may be wrong, try Net Profit divided by net assets X 100. Also Gearing is Long term borrowing divided by equity, there is another way gearing is expressed but this is the one I use.

Moodley

Moodley

hello...me again

Thank you all for helping me out with those ratio answers,
Im stuck with another question, Jun 07

Section 1,
how do i handle "overtime paid at a premium of 20%", what does that mean?

or budged overtime premium is included as part of the direct labour cost , well i guess in this case overtime required & overtime payment will be 0 as per this answers givin, but if its not included in the direct labour cost then how do i handle it, pls help!!:001_unsure:

Also anyone know what interest cover ratio is, learned it in DFS but cant remember now & just saw it in 1 of the past papers.

Thanks again guys, enjoy wknd revision

& good luck for Monday...

Moodley

MAC - 1st Dec

hello...me again

Thank you all for helping me out with those ratio answers,
Im stuck with another question, Jun 07

Section 1,
how do i handle "overtime paid at a premium of 20%", what does that mean?

or budged overtime premium is included as part of the direct labour cost , well i guess in this case overtime required & overtime payment will be 0 as per this answers givin, but if its not included in the direct labour cost then how do i handle it, pls help!!:001_unsure:

Also anyone know what interest cover ratio is, learned it in DFS but cant remember now & just saw it in 1 of the past papers.

Enjooy wknd revision & good luck for Monday