Exams experience & calculation questions
TyJac
Registered Posts: 42 Epic contributor 🐘
Hi guys.
I self-studied AAT in mid August and booked all my level 2 & 3 exams (except 2 software modules) for October and November. Exams were booked based on what was available at the time, so I basically took 2 exams each week, mixing level 2 & 3 exams together.
In line with the recent change in AAT assessments and the publication of new edition of books such as Osborne books, I studied using the old books and still managed to pass all my exams to date. So I may be able to advise on some possible sections of each exam which they lay strong emphasis on.
All I've left to take is 'Cash management' & 'Indirect tax' which will take place next Wednesday morning and afternoon, then I'll book the software exam for December and then take my level 4 exams in January & Feb :laugh: Then AAT done, and hopefully enough time to book for ACCA exams in-take in June. :laugh:
My advise for those who is going to take AP1 & AP2, manage your time very carefully, if you find a question which you find hard to understand, flag it and come back to it later, and attempt to do other questions, as one question could take up to 20min. I found AP2 very easy compared to AP1, on the feedback sheet, I managed to exceed all sections. Even though I didn't need to stop and think about how to answer the question, it still ate up a lot of time on each section...so time management is important!!!!! (Asset register sheet & accrual and prepayments, asset disposal)
My question is:
How do I flex down a budget in relation to the actual figures?
I know how to flex up a budget.
For example:
Budget Actual
21000 18888 (Production)
13333 11111 (cost)
Do I find the difference between the two production figures and then divide it over the budget production figure and then multiply it by 100 to find the percentage difference? Or do I divide it over the actual production figure then multiply it by 100?
I self-studied AAT in mid August and booked all my level 2 & 3 exams (except 2 software modules) for October and November. Exams were booked based on what was available at the time, so I basically took 2 exams each week, mixing level 2 & 3 exams together.
In line with the recent change in AAT assessments and the publication of new edition of books such as Osborne books, I studied using the old books and still managed to pass all my exams to date. So I may be able to advise on some possible sections of each exam which they lay strong emphasis on.
All I've left to take is 'Cash management' & 'Indirect tax' which will take place next Wednesday morning and afternoon, then I'll book the software exam for December and then take my level 4 exams in January & Feb :laugh: Then AAT done, and hopefully enough time to book for ACCA exams in-take in June. :laugh:
My advise for those who is going to take AP1 & AP2, manage your time very carefully, if you find a question which you find hard to understand, flag it and come back to it later, and attempt to do other questions, as one question could take up to 20min. I found AP2 very easy compared to AP1, on the feedback sheet, I managed to exceed all sections. Even though I didn't need to stop and think about how to answer the question, it still ate up a lot of time on each section...so time management is important!!!!! (Asset register sheet & accrual and prepayments, asset disposal)
My question is:
How do I flex down a budget in relation to the actual figures?
I know how to flex up a budget.
For example:
Budget Actual
21000 18888 (Production)
13333 11111 (cost)
Do I find the difference between the two production figures and then divide it over the budget production figure and then multiply it by 100 to find the percentage difference? Or do I divide it over the actual production figure then multiply it by 100?
0
Comments
-
When you flex a budget to the actual level of production you need to look at the cost behaviour.
Variable costs work the way you expect. Divide the total variable cost by the budgeted production and then multiply by the actual production. Fixed costs are not dependent on the units produced, but watch out for stepped costs at specific levels of output.Sandy
sandy@sandyhood.com
www.sandyhood.com0 -
When you say variable cost, do you mean the difference between the two production level? In the book, it showed the method I mentioned for flexing up.
Also shouldn't I be multiplying it by 100 to find a percentage figure, rather than against the actual production figure?When you flex a budget to the actual level of production you need to look at the cost behaviour.
Variable costs work the way you expect. Divide the total variable cost by the budgeted production and then multiply by the actual production. Fixed costs are not dependent on the units produced, but watch out for stepped costs at specific levels of output.0 -
TyJac
You clearly have a successful approach which is enabling you to pass a lot of exams.
I assumed that your question was in relation to costs and revenues at level 3. If I'm wrong please accept my apologies.
When you do study costs and revenues at level 3, variable costs is a key term.Sandy
sandy@sandyhood.com
www.sandyhood.com0 -
Yes the question is in relation to the Cost & Revenues exam. Even though I managed to exceeded on all questions, except for one, the flexing down question that I needed to answer gave me some funny looking answers, so I doubted on my method of calculations, but it turned out to be correct, from my feedback. Yet still, I wanted the method to be clarified.0
-
you will not pass level 4 that quickly,you have a 4000 word project to do which most of us find very challenging0
-
It is up to you TyJac
I suggest that you learn what is meant by cost behaviour
I am not familiar with the approach you described
I think if you take a cost behaviour approach you can get the answer right every timeSandyHood
When you flex a budget to the actual level of production you need to look at the cost behaviour.
Variable costs work the way you expect. Divide the total variable cost by the budgeted production and then multiply by the actual production. Fixed costs are not dependent on the units produced, but watch out for stepped costs at specific levels of output.
This will be tested in the CBE in task 2.4 - but make sure you read the question. Some exams ask you to use a flexed budget but others ask you to use a fixed budget.Sandy
sandy@sandyhood.com
www.sandyhood.com0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership