PEV exams panic

tosin

how to explain ratios and variances, like
gross profit, net profit, efficiency,activity, capacity
if anybody have a easy way of explaining them that would great.

Terdoo

Re Pev

The best way to remember variances is :
When material price variance have a big favourable variance, then material usage would have adverse variance, this could make you write more.

Gross profit Margin; you have to read the instruction given to you as to why gross profit atual may be either higher or lower compare to budget.
It is a matter of paying attention to what is being ask instead of rushing to answer the question. 'think before you write'

hope this helps