Last Minute Question

jewels.pjewels.p Font Of All KnowledgePosts: 1,774Registered
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

  • OlympicRudiOlympicRudi Feels At Home Posts: 55Registered
    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.pjewels.p Font Of All Knowledge Posts: 1,774Registered
    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
  • SandyHoodSandyHood Font Of All Knowledge Posts: 2,034Registered, Moderator
    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
  • OlympicRudiOlympicRudi Feels At Home Posts: 55Registered
    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.pjewels.p Font Of All Knowledge Posts: 1,774Registered
    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.pjewels.p Font Of All Knowledge Posts: 1,774Registered
    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
  • SandyHoodSandyHood Font Of All Knowledge Posts: 2,034Registered, Moderator
    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
  • OlympicRudiOlympicRudi Feels At Home Posts: 55Registered
    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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