Mneumonics????

sexyback

hi there,

Can anyone please help me with remembering variances formula and performance indicators. I'm hoping somewhere out there there is some sort of mnemonics to help remember theses or a verse of some sort! Please please help me i'm starting to get really scared!:confused1:

Thanks
S

Liliana

Yes please!!!
Anyone?!?!?!

swampy1901

I'm struggling with these myself and I'm on my third resit. I failed both parts on Exam number 1. Failed the 1st and passed the second part on exam number 2. Fingers crossed will get them both this time.:thumbup1:

My problem is remembering the formulas for the efficiency and capacity ratios - I can usually answer the first part of the question without too many problems and can cope with the variances by remembering "What it should have cost" against "What it did actually cost" even doing the calculations by this method even it does take longer.
My maxim is - if the answer is correct and you get the answer you should have then it wont matter how you got there as long as you show how you got there.
Perfomance ratios do tend to be a bit learning by the parrot method although one of my tutors says look at the question and the answer will usually be in the question.
For example - Gross Profit Margin

Look for the Gross Profit figure and divide that by how much money you turned over and then multiply by 100

Same for Operating profit Margin.

Whereas for Fixed Asset turnover it would be find your Turnover figure and divide by total fixed assets to get your ratio. In theory that seems to work!!!

But that theory does not work for me on Capacity or Efficiency ratios cos those words are not written in the info given. Except that both are hours based so I need to get that one into my head somehow!! and that volume capacity is a collation of both Efficiency and capacity. :confused1: Now...... if I could get the first two right I might just get the third one right!! :huh:

Swampy

Gemma Culliss

Re: Mneumonics????

Without trying too learn all the formulas look at the reason behind each variance. Mat Price Variance - Stndrd Price - Actual Price x actual quantity. Remember Price variance use Actual Usuage variances use Standard

Mat Usage Variance(Quantity)
Standard Usage for act prod - act prod x standard price(as above)

Standard is always 1st

Hope this helps!!!! xxx

heartsandstars

sexyback wrote: »

hi there,

Can anyone please help me with remembering variances formula and performance indicators. I'm hoping somewhere out there there is some sort of mnemonics to help remember theses or a verse of some sort! Please please help me i'm starting to get really scared!:confused1:

Thanks
S

I have a few mnemonics for remembering the Fixed Overhead variances if they are any help?

Fixed Overhead Capacity -Cows Are Big

(Capacity = Actual x Budgeted)

Fixed Overhead Efficiency - Eat Subway Always

(Efficiency = Standard x Actual)

Fixed Overhead Volume - Very Bright Sun

(Volume = Budgeted X Standard)


There isn't really a flow to them - just based on a few in jokes between me and my friends, but hopefully you find them useful, or get idea's for more memorable ones!