Elements Of Costing Sample Test CBT1

On Question 15b are you supposed to consider the statements as True or False in total isolation, or take into account if the variance was significant or not significant in 15a as part of your decision.

Statement 1: The variance for the Direct Material cost of Department A should be reported to the purchasing manager.
The AAT sample answers give this as false.

Whereas exactly the same statement to the letter is on page 114 of Kaplan's Elements Of Costing and in their answers they indicate this statement to be True on page 120 (Study Text Book 2016-17).

Either 15b is false with AAT because the variance was not significant and therefore does not need reporting to anyone;
Or if 15b is totally isolated from 15a then AAT and Kaplan give different answers to the same statement and one of them must have a publishing error.

Jonathan
Wiltshire.

Comments

  • LucySherwoodLucySherwood Posts: 8Registered
    Hello,

    I have not yet done any of the sample assessments but I did go to start one but was confused, when I pressed the sample assessment it opened up another tab and it asked for a code that was already on so I pressed continue and it asked me to confirm my details but the details on there were completely random, is this normal because it is a sample assessment or should I put my own details in?

    Also I have only just started the unit but I think on one of the e-learning things I did I got a similar example and it said I did not have to report the difference as it wasn't a significant amount but I have Osborne books so it may be different
  • SACKERSSACKERS Just Joined Posts: 11Registered, Tutor
    When doing this question you must consider part a.
    Part a determines if the variance is significant or insignificant.
    When a variance is significant and reported to the correct person as follows:
    Materials :purchasing manager or production manager
    Labour: human resources manager or production manager.
    Then the statement is True.
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