Costs and Revenues Exam and Revision Tips

ariadne

I have a few days to go to get ready for this exam and wondered if anyone had sat it and remembered what it was like had any tips. I have taken a break and gone back to Accounts Prep 1 which is so much lighter on the maths and new concepts in comparison. But I have to get back into CRS and remember all those equations and costing techniques. How similar was the exam to the practice ones online? Any topics which were a surprise?

I am doing the 2010 exam but noticed there were questions on 2013 practice tests which I didn't learn how to figure out from my book - Internal Rate of Return estimates and comparing the costing elements, like marginal, absorbtion and prime - there was a question on which would produce the lowest profit if materials were restricted. I'm hoping these won't come up as they may be particular to the new syllabus but it would be good to understand it. The only thing tripping me up is not reading the question carefully enough, especially if they ask it differently to how it was explained in the text book, contribution in the limiting factor question is the last one to do so as it was taught a per unit but bus journeys are a little different. But I'm also aware that the practice tests aren't covering all the course content, including the many equations. I will have a Google and will report back on the exam in case any one else is preparing for it soon.

Thanks,

ariadne

There was also something about knowing the difference between net present value and net present cost - I can't find any explanation online but I presume NPC is the costs incurred over a period in today's money, and NPV is the money gained, or lost, over a period in today's money. So NPC is the cost of a project over a period and NPV is the money made/saved or lost through a project over a period. So revenue - costs (add any residual cost) = value, which is multiplied by the the discount rate and added together against the initial outlay. Whereas NPC would look at the costs only and not bother looking at increased output/revenue.

ariadne

Just incase anyone has this exam coming up, I sat this exam today and passed with no problem. Phew. It was very similar to the practice tests. A couple of questions where a little different to how they've been worded in the practice tests but reading through carefully helps. I really took my time and went through it after finishing to double check, this helped as I made an error, accidentally adding a zero to something, so was able to correct it. I found reading the assessment of exam performance, on MyAAT, really helpful as it lists the expected tasks for each question. Better get back to AP1 study now and glad to leave C&Rs behind for now.

RosieCarlisle

Congrats on your pass! I'm studying level 2 at the moment, but already reading a fair few scary things about Costs & Revenues, haha.

ariadne

It was a slog to get through the book, more new stuff than other modules so far, but as long as you understand and practice the concepts it's not too bad. Plus the exam didn't include the hardest stuff from the module. It's quite a mathematical module so an aptitude for maths helps a lot. Basic costing at L2 is helpful for inventory valuation which is done again in L3, plus concepts on costing like prime costs and cost behaviour.

I'm back to AP1 now, again L2 is a great foundation for this module and I've got through much quicker so far thanks to the basic accounting modules. Although it is a brain twisting learning double entry, it eventually sinks in after writing it out a few times and practicing lots, well I hope it does with accruals and prepayments and bad debts which I've just done.

RosieCarlisle

Oh that's interesting, as I've always enjoyed maths and it was my best subject at school. I'm about to start L2 Basic Costing, so do you think that'll give me a bit of an indication as to whether I'll struggle with Costs & Revenues?

ariadne

C&R is definitely a step up with lots of new stuff, but the inventory excercise (FIFO/LIFO and AVCO) is exactly the same and BC gives you a head start on cost behaviours and some other concepts that come up at L3. I found BC very easy once I got my head around inventory. If I remember right, it is a much smaller module than the basic accounting module so you should get through it quickly (less than a week). C&R took much longer (a few weeks) but it's still only fairly basic maths, otherwise I would've struggled! I hated maths at school.

expat13

Thanks Ariadne for all the really helpful comments! Am finding this module a massive slog as well and am sometimes quite frustrated at the jumps Kapan's self-study book makes... Ah well.

One question though - do we get a list of the formulas in the exam or do we need to learn all of them off by heart?

SandyHood

You will need to learn your formulas. You will need them again at level 4, so if you can understand them they will tend to stay in your memory longer than if you just learn them.

sandy@sandyhood.com

expat13

Thanks for the heads up, Sandy!

ariadne

Good luck remembering the formulas, it's a good idea to make sure you can change the order of formulas, something I vaguely remember doing at school and learnt it again for this paper, also useful for the accounting equation on the financial statements papers. There are tutorials online with helpful ways to remember them such as the reorder quantity one. I have to admit it's all a hazy memory now, been doing the financial accounting papers since, so hopefully it will all come back for the related L4 modules.

j1994

How do i work out the fixed cost of producing one unit and varaiable cost of producing one unit?

ariadne

Usually the fixed cost is given and the variable cost element is worked out by adding up the the different variable costs given. Fixed costs are the same regardless of production numbers whereas variable goes up as production levels rise proportionately. It depends on the question but it's usually clearly labelled.

j1994

Id be really greatful if someone can help me with question 1.3 pracrice assement 3 2010 .it says guarnteed minimun payment of 520 whats the mechanics total payfor week? And if therrs a total guarteed weekly paymebt of 680 whats total pay for the week? Hes is paid £15 per standard hr produced .

MrsWright

Hi
I am not able to get 2010 standards material anymore. I assume you are? I cant help without the assessment and the info, sorry but good luck

j1994

If u give me ur email i can send u a screenshot of the question

MrsWright

sure..... lauren.newsham@gmail.com

JamesM

I'm really struggling to get my head around marginal costs and absorption costs. Any links to help me out?
Or can anyone explain it please? Thanks

Slackpants

Hiya! Sorry I am a little bit late to the party.. But I wondered if anyone could help with question 1.6 on the costs and revenues (AQ2013) sample assessment 2. Unfortunatley I missed the class when this was taught and I haven't had chance to catch up. My exam is soon and I am starting to panic - aminly because the college I attend is useless and we have a different tutor each week Thanks!

SandyHood

Dear Slackpants

Rather like Mrs Wright above the task number and sample assessment number are no help to me.
If you can screen print or snippy the task and send it to me as an email attachment I expect I can probably help.

If you genuinely consider the college you attend is giving a poor image of AAT, you should contact AAT and tell them. Sometimes colleges have their approval to run AAT courses withdrawn.

Yours