Financial Performance HELP!!!!

Zara R

Hey,

I was wondering if there is anyone that can give me some pointers on remembering variances, I just cant seem to get the hang of them :sad:

I have started back at chapter 1 making notes about pretty much everything, but just seem to be drowning this year, well I say that I did pass my 1st exam but still isn't giving me much confidence.

I remember back at level 2 when I used to use PEARLS, so is there anything like that for Variances or does anyone live in the Ipswich area that could help me.

Any help on this is greatly appreciated.

Rinske

http://forums.aat.org.uk/showthread.php?22143-PAMDILL-this-is-for-you

http://forums.aat.org.uk/showthread.php?17955-Standard-Costing-Variances

Try having a look at those and see if it helps you!

Jo Clark

Hello Zara

When I learnt variances we were taught 'should' and 'did' and it was great. You will be given some data which will contain the standard cost per unit etc. and also what it actually cost. Then you need to populate the 'should' and 'did' with the data to calculate the variance. For example in the practice CBA there is a question as follows:

A company purchases 10000 kilograms of material at a cost of £33000. The standard cost per kilogram is £3. The total material price variance is:

So using should did you calculate the variance as follows

Should = 10000kg x £3 = £30000 (£3 being the standard cost per kg)
Did = £33000

The variance being £3000 adverse.


One pointer is to remember that when dealing with units in variances you need to convert them to monetary values.

Try this method with some of your questions and feel free to post any you struggle with here and I'm sure someone will be able to help you.

Hope this helps you


JC

Jo Clark

Rinske wrote: »

http://forums.aat.org.uk/showthread.php?22143-PAMDILL-this-is-for-you

http://forums.aat.org.uk/showthread.php?17955-Standard-Costing-Variances

Try having a look at those and see if it helps you!

Thanks for these links Rinske - I am sure that I will find them useful and they explain the process so much better than I did

Zara R

Thank you for this guys, i havent had a chance to even look at my work yet, work is manic, but i shall look and let you know if this has helped me