Last Minute Question

jewels.p

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)

OlympicRudi

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

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

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

OlympicRudi

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

OlympicRudi wrote: »

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

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

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.

OlympicRudi

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.