Performance Indicators

sexyback
sexyback Registered Posts: 13 Regular contributor ⭐ 😼 ⭐
in AAT Level 4 (Level 8 in Scotland)
HELP ME PLEASE!!!!!!!!

I really need some help on the Performance Indicators section on the PEV exams. Firstly i need quirky ways to remember them (ie rhymes or mnemonics) and secondly understanding and explanations.

I've already failed this section on DFS and don't want to do the same on PEV
http://forums.aat.org.uk/images/smilies/set1/crying.gif
Thanks soo much in advance of hopefully many replies

Sharon :crying:

Comments

  • dobbieobby
    dobbieobby Registered Posts: 231 🎆 🐘 🎆
    I remember Current Bun.
    Because if you're doing something with MONEY, then it's Current / Base because you have to pay for Current Buns.
    If you're doing something with Index's, then it's Base / Current.
  • mark130273
    mark130273 Registered Posts: 4,234
    dobbieobby wrote: »
    I remember Current Bun.
    Because if you're doing something with MONEY, then it's Current / Base because you have to pay for Current Buns.
    If you're doing something with Index's, then it's Base / Current.

    huh?????
  • Londina
    Londina MAAT, AAT Licensed Accountant Posts: 814
    If you know why you need them, then it's easier to remember!

    example profit margin is how much profit has been generated from revenue, so of course the formula is PROFIT/REVENUE

    or

    ROCE return of capital employed, how much profit has been generated from capital, therefore the formula is PROFIT/CAPITAL

    most of the formulas just come out from the name itself, example RECEIVABLE RATIO means Debtors/sales, you will not think about using something else (creditors,profit, capital, etc)

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