# costing

Registered Posts: 95 ? ? ?
Hello

I am due to do my costing exam in about 2weeks however i am struggling with the majority of questions. i have always found this part difficult and i am concerned that no matter how hard i seem to be working and revising that nothing seems to be sinking in.

I just need some reassurance from someone who has struggled themselves, and who also found that costing does not come natural to them but has got throught the exam in one piece.

thanks

• Registered Posts: 135 ? ? ?
Shell B wrote: »
Hello

I am due to do my costing exam in about 2weeks however i am struggling with the majority of questions. i have always found this part difficult and i am concerned that no matter how hard i seem to be working and revising that nothing seems to be sinking in.

I just need some reassurance from someone who has struggled themselves, and who also found that costing does not come natural to them but has got throught the exam in one piece.

thanks

This is what exactly happened to me, ECR just didn't get in my brain, after failing my Dec exam, I was really struggling to get into grips with ECR. I passed the CBE last monday and If you keep at it you'll eventually just get it.

Most of ECR is general knowledge and the answers are literally given in the question.

I have a few tips that I can share with you and I'm pretty sure that they will help you.

ECR Tips:

Always remember "per" just means divide, if you see "per" in the exam just divide by exactly what it says in the question, that's all you have to do don't get twisted when you need to do is divide.

When doing a limiting factors question again the "per" sign is often used or "/" is used, again it just mean divide, if you do this there is NO WAY you would get the question wrong. Get the figures from the question.

Revise all the formulas and make sure you know them inside out, therefore if a question comes up you can arrange the formula to get the correct answer.

I hope that helped. Goodluck with your exam!

Dipak
• Registered Posts: 106 ? ? ?
You are not alone. I struggled too. Doing my skills test and cbe in a couple of weeks. Hopefully I have done enough to get through this time. But it does knock your confidence a bit when you do not pass the exams or skills test.

Thanks for the tip Dipak, I shall remember that.

Jennie
• Registered Posts: 95 ? ? ?
best production mix

the one thing that really throws me is best production mix, especially when you have to work out the labour hr per unit and the contribution per labour hr. I am working through past papers and every time i get stuck on this, and looking at the answers is not helping either.

Any tips?????
• Registered Posts: 2,453
Labour hour per unit: look how many units you can make in an hour, for example if they take 6 minutes to make one item, you can make 10 in an hour (60 minutes divided by 6 or 10). That means the contribution per labour hour is 10 times the unit price.

Not sure if this is what you mean though.

If you take 2 hours per unit, you would divide it by 2.

Sandy has done a number of blogs on this subject I think, it might just help to read those and get some explanation in a different way.
• Registered Posts: 95 ? ? ?
yes i do see what you mean but in exam paper dec2003 page 13 task 2.3 it does not tell you how long it takes to make 1 item.

feelinn rather stupid and thick at the moment.

how do i find sandys blogs????
• Registered Posts: 2,453
http://forums.aat.org.uk/showthread.php?t=24021&highlight=blog has a post to his blog. Not sure, but as the AAT requested it, I would expect it under the online study materials that they offer once you logged in.

As for the question, you need to use the answers you used in question 2.1

For the three products it shows the total number of units they expect to sell and produce and the labour hours required.

For each product you would divide the hours by the units to find out the number of hours per product. For Exe for example it is 2,000 products and 1,000 hours, so one unit takes 1/2 hour to produce.

Using the Exe as further example. You then would work out the contribution per hour.

The contribution per unit is 17.50 (given). You can produce two products per hour (1 takes 0.5 hours), so the contribution per hour is 35 (17.50 times 2).

If you calculate these figures for the other two products as well, you can see which product gives the most contribution per hour, which is the one you produce first, the next one you would produce is the one with the next highest up contribution and the last one is the lowest. At which point you most likely only produce a limited amount of products, as you run out of hours (limited factor).

Does that help at all?
Cheers,
Rinske
• Registered Posts: 95 ? ? ?
yes thanks for being patient its much appreciated.

Now i can see where your coming from am sure once i have practised this a few times i will get there.

Thanks