PEV Exam
tomburns1987
Registered Posts: 42 Regular contributor ⭐
How did everyone find the PEV exam?
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You can't post about the exam yet because there are people taking it in different time zones.
Post after 3pm
Good luck!FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire0 -
Oops!0
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tomburns1987 wrote: »Oops!
It's ok, don't panic - you can have the general how did it go chit/chat, but some people (god knows how they do it) seem to be able to remember chapter and verse about the exams and quote it verbatim - don't do that!FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire0 -
im dieing to reply but i shall wait till 3
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It's ok, don't panic - you can have the general how did it go chit/chat, but some people (god knows how they do it) seem to be able to remember chapter and verse about the exams and quote it verbatim - don't do that!
you mean i cannot say what answers i got? lol as if i could remember
How did it go? sorry i never remember which area of MAC is PEV and which is PCR0 -
i did MAC .....0
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PEV is variance analysis and PCR is budgets....0
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tomburns1987 wrote: »PEV is variance analysis and PCR is budgets....
thanks i should remember in future0 -
So can anybody remember any answers? Can we say now?0
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All I know is that i couldn't remember how to answer the last question!0
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I was quite surprised by section 1 in PEV - no production volume variance/reconciliation statement?
I got a bit muddled on one of the written questions... I think it was 2.2 about the risk involved with changing the levels of investment and fluctuating sales volume. I wasn't sure how they wanted us to back it up with calculations so I worked out some break even sales levels based on the revised scenario and compared those - is this what they were getting at or did I totally miss the point? What did everyone else do here?
I also found myself quite pushed for time, although I suspect I'm in the minority here as most people seemed to leave early! I started out well, nice and calmly, but was rushing towards the end which I don't normally do so I'm not sure what happened there.
I'm glad it's over!0 -
I was a bit stuck on that one too but ended up writing about the risk being that fixed costs do not change so if turnover is not as high as we thought then we could possibly make a loss.
I calculated the expense/turnover percentage for fixed O/H when they where £500,000 and when they where £1,500,000. No idea if that was the right thing to do but it was all I could think of at the time.0 -
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Yes that's pretty much what I wrote about too, but your caculation to back it up sounds much more straight forward than mine. Why didn't I think of doing that? I had a feeling as I was doing it that I was making it more difficult than it needed to be... oh well!0
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Yeah, I have been studying on my own at home, reading over the past papers. Last night I thought about all the things that might come up and I remembered life cycle costing, so I made a note to revise it. However I forgot all about it until I opened the paper and could have kicked myself!!0
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This thread is quieter then i expected.! Everyone doing MAC now it seems.
I thought the exam was fair too.
I got muddled with the efficiency and capacity overhead variance...oops! I did write a lot when commenting on the variances though, quite suprised myself. Can't believe we were lucky enough to get the simple question about variances affecting profits at the end of section 1.
Wth the fixed overhead risk question I said about the overheads being spread across the volume of the sales, and if unexpected costs increased and the sales volume was decreased then the overheads cost per unit would be higher and amount absorbed by the volume decrease would be lower giving reduced profit, i can't remember the calculations i did but i went down the overheads being absorbed route, least i attempted so thats the main thing.
Section 2 was ok but my hand was aching from all the writing! I too only finished 15mins before end which is the longest i have ever spent in an exam so far!
I had a moment of madness though and when it said keep scenario 1 fixed costs i was thinking fixed costs and fixed productions overheads, but then when i reread the email extract realised i was just the production overheads that should of been for change in costs! I am easily confused it seems!
I think i had 41% gross for the original and 53??% for the second one ( but as i did the fixed costs wrong it will be wrong, i did show all my workings underneath though so hopefully i will get some marks.
The last question i attempted, quite well to my suprise as when i read it i thought i don't remember this, but lucky with PEV common sense goes a long way, so i just worked out the full cost over the 5 years for each using the discount factors and then recommended the cheapest and i think it was the lease one i can't remember!
Overall i felt better coming out this then i did on the ptc and btc in june and i passed both of them, so fingers crossed for this one. I know i have made mistakes but i attempted everything and made my workings very clear at the end of each question i answered so hopefully all will be well!!! Must think postive or i'll go mad!0 -
How did people answer the question (i think it was 1.2) where there was info given by the manager explaining that they'd purchased recycled material for £1.60 because the price was going up and some info about labour costs and a new production line?
Im not sure I was on the right track but tried to explain the reasons that the variances occured?0 -
I had a moment of madness though and when it said keep scenario 1 fixed costs i was thinking fixed costs and fixed productions overheads, but then when i reread the email extract realised i was just the production overheads that should of been for change in costs! I am easily confused it seems!
I noticed this too - it was a bit ambiguous as I think the managers comments referred to "fixed production overheads" but the actual question just referred to "fixed overheads"
I only revised the production overheads but I wasn't 100% sure from how the question was phrased if they meant us to change the others too.0 -
Did anyone know what to do with the machine hours in first section? I ignored it as it didn't fit anywhere with the variances?0
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tomburns1987 wrote: »How did people answer the question (i think it was 1.2) where there was info given by the manager explaining that they'd purchased recycled material for £1.60 because the price was going up and some info about labour costs and a new production line?
Im not sure I was on the right track but tried to explain the reasons that the variances occured?
That's what I did too.
I just explained each of the variances using the reasons they gave us, such as the inferior material creating more wastage so giving an adverse usage variance, yet it was cheaper so gave a favourable price variance etc. And I think the fixed overhead expense variance was due to the monthly depreciation of the upgrade? - also responsible for the improved labour efficiency.
They did seem to give us the reasons in the question though, this always makes me suspicious!0 -
I also remember my revised gpm etc... being lower than the original. How about anyone else??0
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Did anyone know what to do with the machine hours in first section? I ignored it as it didn't fit anywhere with the variances?
There were machine hours? I don't remember doing anything with those. We were looking at fixed overheads based on labour hours weren't we?
Hopefully we didn't need it!0 -
No i didn't use the machine hours either ( had quite a bit of time worrying as would of thought they were there for a reason!) and i did the same with revised material price and used it to make comments on the variances.0
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Just have to hope for the best now then!
When are the results published?0 -
Yeah just wish and wait now, least there is xmas to keep as occupied!
More revising for PCR now and then I need to get my unit 10 draft in by end of dec so i have enough to keep me busy. Then DFS for June and then a long rest!
Not sure i read Feb 14th on some other posts on here.0 -
I didnt use the machine hrs either, i thought about it a few times but then when i looked at the actual figures i couldnt see anywhere on there that mentioned machine hrs.
glad im not the only one!0 -
Not sure how i went...i did calculate that the initial out lay of improving the production line when divided into the 5 yearrs and then the 12 months was the same as the variance..i think i made it 3120 advers so that would account for that, also the cheaper use of material shows a fav price variance but advers usage as more is needed due to lower quality... i couldnt remember the lifcyle calculations so i managed to find an old thread on here which explained it last night so thank goodness for that...lol0
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