Last Minute Question

I thought MOS as a % was calculated as Current Output-Breakeven/Current Output x 100

On the June 2009 Exam the MOS % is calculated as MOS in Units/Breakeven x 100. So is it the Current Output or the Breakeven you divide it by?

Thanks (Am I panicking)

Comments

  • OlympicRudi
    OlympicRudi Registered Posts: 55 ? ? ?
    AAT website isn't cooperating atm, so I haven't checked the exact question, but it's the budgeted sales units that you divide by.

    Edit, just checked the question & it's actually the alterate breakeven formulae. Which is Fix costs/(cotribution/sales ratio)

    the C/S or P/V ratio as it's also called = contribution/selling price, and is effectively the % of the selling price that is contributing to the fixed costs.
  • jewels.p
    jewels.p Registered Posts: 1,774
    Question is: If CCS were to sell £875,000 worth of Seafood soup what would the MOS and MOS% be .....................................wait a minute I have just realised it says what would the MOS% over BREAKEVEN SALES be?

    I MUST READ THE QUESTIONS CLEARLY! I wouldave def got that one wrong anyway cause I always calculate it using Current Output.

    Thanks anyway
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    The question asked for the MoS as a % of the breakeven amount

    It was testing whether you understood that this was useful, or (as I would say) this doesn't help as much as the MoS as a % of the forecast sales amount
    Sandy
    [email protected]
    www.sandyhood.com
  • OlympicRudi
    OlympicRudi Registered Posts: 55 ? ? ?
    jewels.p wrote: »
    Question is: If CCS were to sell £875,000 worth of Seafood soup what would the MOS and MOS% be .....................................wait a minute I have just realised it says what would the MOS% over BREAKEVEN SALES be?

    I MUST READ THE QUESTIONS CLEARLY! I wouldave def got that one wrong anyway cause I always calculate it using Current Output.

    Thanks anyway


    Oh since you asked for MOS I thought you were on about part (a). Now I see it's part (c). Yes always read questions carefully. It's not like the ECR is a exam you'll be rushed in.

    PS. & actually (c) asks for MOS% & MOS/breakeven %

    Also, Good Luck :)
  • jewels.p
    jewels.p Registered Posts: 1,774
    Oh since you asked for MOS I thought you were on about part (a). Now I see it's part (c). Yes always read questions carefully. It's not like the ECR is a exam you'll be rushed in.

    PS. & actually (c) asks for MOS% & MOS/breakeven %

    Also, Good Luck :)

    It doesnt it asks for MOS and MOS/Breakeven % (Not both as %)

    Good Luck to you too
  • jewels.p
    jewels.p Registered Posts: 1,774
    SandyHood wrote: »
    The question asked for the MoS as a % of the breakeven amount

    It was testing whether you understood that this was useful, or (as I would say) this doesn't help as much as the MoS as a % of the forecast sales amount

    Wish you could come with me in my Pencil Case! lol

    Thanks Sandy
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    Best wishes
    Read the paper and try to be as calm as you can. It is amazing how much more of what you read registers when you are calm.
    Sandy
    [email protected]
    www.sandyhood.com
  • OlympicRudi
    OlympicRudi Registered Posts: 55 ? ? ?
    jewels.p wrote: »
    It doesnt it asks for MOS and MOS/Breakeven % (Not both as %)

    Good Luck to you too

    Yes you are right, I've no idea why I put the % there. Just habit after talking about MOS% earlier I guess.
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