Is Cost and Revenues really that bad?

Mollypod88

Sam22 wrote: »

I was just reading through this post as this is my next unit and I also play the flute!! I'm in a music career at the moment but hoping to change to accounting! Good luck with your grade 5 theory! I remember doing mine!

Brilliant ... we are all coming out the wood work now :laugh: What job are you currently doing then?
Theory is going well. Hopefully I should pass ... exam next Wednesday!

Sam22

I'm currently a Military Musician.
How long have you been playing?
I'm sure you'll be fine with the theory,
You'll have to let us know on here how you get on.

billdoor

Mollypod88 wrote: »

Brilliant ... we are all coming out the wood work now :laugh: !

Woodwind, surely??:laugh: :001_tongue:

Mollypod88

Sam22 wrote: »

I'm currently a Military Musician.
How long have you been playing?
I'm sure you'll be fine with the theory,
You'll have to let us know on here how you get on.

I've been playing clarinet for about 4 years now. I want to start violin next year just trying to find a tutor.

Mollypod88

billdoor wrote: »

Woodwind, surely??:laugh: :001_tongue:

That's terrible ... but I love it!!!

Mollypod88

Hi All,

I really need help with the high-low method. First of all what is this? Second, I need help working out how the below answers have been reach:

The semi-variable costs should be calculated using the high-low method. If 5400 batches are sold the total semi-variable cost will be £13284 and there is a constant unit variable cost up to this volume.


Batches 2160 2700 3600
Variable Element 5400 7200
Fixed Element 2484 2484


How do you get to these answers please?

Thank you!

Mollypod88

This hasn't displayed as I typed it. The answers relates to batches 2700 and 3600

Thank you!

tillyjbc

Hi Mollypod88!

I think I can help as I've recently done this unit! The Hi-Lo method is used to work out the Fixed element of SV costs. They've already given you the answer for the Fixed element so you could just take that from the SV cost to give the Variable (13284 - 2484 = 10800).

If you hadn't been given the Fixed element, take the difference of the high and low SV costs (ignore the 2160) and divide by the difference between the high and low batch numbers. So (13284 - 7884) divided by (5400 - 2700) = 5400 divided by 2700 = 2. Therefore 2 x 5400 = 10800 Variable (+ 2484 Fixed) = 13284 Total SV.

I'm doubting myself now seeing it written in odd sentences! I think this is right (hopefully someone else will be able to either correct me or confirm!!). And if I'm confusing you I'm really sorry, it made sense in my head. Again maybe someone else will have a better way of explaining it.

Hope this helps 1

Mollypod88

Sam22 wrote: »

I'm currently a Military Musician.
How long have you been playing?
I'm sure you'll be fine with the theory,
You'll have to let us know on here how you get on.

Exam went well. I'm pretty sure I passed. Now just have to wait 4 long weeks for the results!

Shame I can't say the same about CRS. I picked up the revision book yesterday and it feels like I can't answer any of the questions. I just don't how I'm going to pull it together :crying:

liveprincess

Keep at it. I was the same. I worked through the book, and went to do my revision questions and it wasn't going well at all. So I read again the chapters I struggled with the most, done few questions with an open book and then had a go on my own and it all started to make sense. Don't panick, you still have a lot of time. I'm taking mine on Tuesday :scared:

slingo

depends on the questions

if you follow the computer assessments and pass those it should help but it all depends on the questions you receive on the day. Nobody seems to receive the same questions so discussing it afterwards is a little difficult. In our class Three out of Ten failed the test and have to resit it.

Maybe if Britain still actually had a manufacturing sector this unit wouldn'd seem so irrelevant

Straight into AP1 now....................far better unit

liveprincess

I actually work in manufacturing sector and my boss recently got me doing overheads etc. so I guess it will be a good experience and might help me with this exam too.

Mollypod88

liveprincess wrote: »

Keep at it. I was the same. I worked through the book, and went to do my revision questions and it wasn't going well at all. So I read again the chapters I struggled with the most, done few questions with an open book and then had a go on my own and it all started to make sense. Don't panick, you still have a lot of time. I'm taking mine on Tuesday :scared:

The only thing I can do is Labour costs - and I'm not joking! I don't know where to go from here

liveprincess

Just to share my good news with you I passed this dreaded exam today. I found it generally ok, there were few questions which threw me as I thought there was not enough information to answer them. It was quite similar to the mock exams on the AAT website. Didn't have any of the process costing, equivalent units or OWIP/CWIP questions.
Mollypod, if you want let me know what you're struggling with. I'll do my best to help
Good luck with it, don't give up

Jo Clark

Congratulations liveprincess!

liveprincess

Thanks Jo :001_smile:
Also I was on my own, nobody else was doing an exam there..

Mollypod88

Hi All,

Please can you help answer a simple question for me! I can't seem to get my head around reapportionment.


Repportion Canteen by staff members (total 555)

staff for machining 2
staff for fabrication 2
staff for stores 1

Answers: Machining 222
Fabrication 222
Stores 111

Can somebody please help!

Whirlwind

Morning!!

Try this:

Take total to be reapportioned = 555
Divide by total ratio (2+2+1=5) = 5
555 / 5 = 111

Then multiply by ratio=
Machine 2 x 111 = 222
Fabrication 2 x 111 = 222
Stores 1 x 111 = 111

What you are trying to do is divide the total staff to be apportioned into the ratio's suggested.

Hope this helps!

Mollypod88

Brilliant thank you!

sunnii

Help Please!!! I have my costs and revenue exam on wednesday and im having difficulty with CBA 3 question 2.2
even with the answers I cant seem to work them out.
Could someone please advise thanks
CENTRAL BUS COMPAY HAS THE FOLLOWIING FORECAST INFORMATION FOR THE CONTRACT CS74

FORECAST MILES TRAVELLED 60,000
£
SALES REVENUE 350,000
VARIABLE/SEMI VARIABLE COSTS
DIESEL FUEL 65000
DRIVERS WAGES & RELATED COSTS 60,000
OVERHEADS 45,000

FIXED COSTS
INDIRECT LABOUR 54,000
OVERHEADS 66,000

TARGET PROFIT FOR CONTRACT 42,500

DRIVERS WAGES AND RELATED COSTS ARE SEMI-VARIABLE COST. THE FIXED COST IS £30,000 PLUS 50P PER MILE

USE THE TABLE BELOW TO CALCULATE THE REQUIRED NUMBER OF MILES FOR THIS CONTRACT TO ACHIEVE ITS TARGET PROFIT.
Enter the contribution per mile to two decimal places


Calculation of required number of miles £
Fixed Costs
Target Profit
Fixed Cost and target Profit
Sales Revenue

Variable Costs
Contribution
Contribution per mile

Required no of miles to achieve target profit.

SandyHood

1. Read the whole question
   
2. Work through the question line by line
   Fixed cost add up the 3 fixed costs
   1. DRIVERS WAGES AND RELATED COSTS ARE SEMI-VARIABLE COST. THE FIXED COST IS £30,000
   2. INDIRECT LABOUR 54,000
   3. OVERHEADS 66,000
   Total £150,000
   TARGET PROFIT FOR CONTRACT 42,500
   Fixed Cost and target Profit £192,500
   
   Sales Revenue £350,000
   Variable Costs
   Diesel fuel .......... . £65,000
   Drivers wages ..... . £30,000
   Overheads ......... . £45,000
   Total variable cost £140,000
   
   Contribution. ...... £210,000
   Contribution per mile
   divde total contribution by the number of miles
   £210,000 ....... . = £3.50/mile
   60,000 miles
   
   
   
   Required no of miles to achieve target profit.
   Divide Fixed Cost and target Profit £192,500 .......... . = 55,000 miles
   by .......... . Contribution per mile £3.50

Now please learn the techniques and practice them
I strongly recommend that the answers are only there for you to compare your answer with not for the starting point of how to do it.

SandyHood

I've done what I suggested and compared this answer with the model answer.
Here I must emphasise what I wrote

the answers are only there for you to compare your answer with not for the starting point of how to do it.

I maintain that the model answer would not be awarded full marks
Remember sunni's quote? It asks for

Enter the contribution per mile to two decimal places

So be absolutely sure (no shaddow of a doubt) if you put an answer of £3.50 you'll have full marks.
If you put an answer of 3.5 you will not have full marks

In this exam, when the examiner specifically asks for a certain number of decimal places he will penalise answers that do not use the same number of decimal places.

I have two Cost and Revenue classes at Chichester, I have two colleagues who also take this unit. On Friday one of these colleagues and I will be attending a masterclass for lecturers led by the examiner. If you have any questioons you would like me to put to the examiner, please let me know.

Mollypod88

Why are the greenlight CRS exercises not working :glare:

Mollypod88

Hi Sandy,

How do you answer question 2.1 of practice exam 4 please?

Thanks

SandyHood

Mollypod88

1. Ask your invigillator for some paper for your workings
2. Draw up a table, in column 1 copy the column below the
   "possible annual miles"
   Sales revenue
   Variable costs
   Diesel fuel
   Drivers' wages and related costs
   Overheads
   add a row for total variable cost
   Fixed costs
   Indirect labour
   Overheads
   add a row for total fixed cost
   Total cost
   Total profit
   Profit per mile
   
3. Then leave a space for a second column
4. and in a third column where you copy the data under the 10,000 heading
5. add a fourth column with the heading 12,500 and a fifth with the heading 15,000
   you now have a 5 column table which ought to fit any 2.1 task (note all this preparation hasn't rushed to answer the tasks yet, these follow quickly)
6. in the 1 mile column enter the revenue figure (£120,000/10,000 miles = £12)
7. then do the same for each of the variable costs AND add them up
8. Multiply the total variable cost per mile by 12,500 miles and enter the value in that row for the 12,500 column
9. Enter the fixed costs in both the 12,500 column and the 15,000 column. this involves copying only as fixed costs do not change when the miles travelled change The total value for fixed costs will also be the same in all three columns.
10. Now you should have a table with 5 columns and a few numbers - but looking incomplete. This is fine. You could complete it but don't need to to answer the questions
11. Answer the questions

1. You worked this out at the start of your workings - £12
2. Variable cost per mile will be the same for 1, 10,000, 12,500, and 15,000 because that is what variable means. Take the total you had when you added up the variable costs in the 1 mile column
3. This is a test of understanding fixed cost per mile will fall as the total miles increase Take the total fixed costs figure and divide it by 12,500 miles
4. do the same - this time divide by 15,000 miles then add on the variable cost per mile (from
5. You can find this in a number of ways: I suggest take the revenue per mile (from A) less total cost per mile for 15,000 miles (from D)

Good luck
I hope this works
I'll try to upload the finished product - but it is the process getting there which you really need

SandyHood

This is a finished product

Attachment not found.

Mollypod88

Thank you Sandy

Mollypod88

Hi All,

Just to let you know I passed my music exam yay! :001_tt2:

I know people have said the CRS exam differs from the mocks but how different is it really? Am I going to be asked questions which I haven't learnt!

billdoor

Well done on passing the music exam mollypod:thumbup1:

You shouldn't be asked questions that you haven't learned, I would say to do as many practice exams as you can as I did a few that were based on a manufacturing company and then got one that was based on a transport company and it threw me a little bit - but the same knowledge applies, it was just slightly different.

I did my CRS exam yesterday and passed, but until a couple of days ago I thought I may be heading for a fail as there's a lot to take in. Do as many practice questions and exams as you can find and if you're having trouble with any areas, re-read them until you understand it.

I did have one question that I thought was incomplete i.e. not enough information to actually answer it so I had to just make an assumption. The rest of it I thought was fine.

Good luck when you do the exam.:001_smile:

Mollypod88

Well done for passing!

My exam is next Wednesday. Really not sure if I'm going to pass. More than likely I will fail. I've found this unit the most difficult. But I just have to give it my best shot!