Financial Performance

Staffknot

I seem to be struggling with the fixed overhead variances...can anyone tell me the formulas for these and any way of remembering them?

Pjdav

Hi This may help you....

http://kfknowledgebank.kaplan.co.uk/KFKB/Wiki Pages/Variance Analysis.aspx#_x003C_h4_x0020_class_x003D__x0022_titletext_x0022__x0020_align_x003D__x0022_left_x0022__x003E_Fixed_x0020_overhead_x0020_variances_0_1_0_5_0_0_0_0_0_0_0_0_0_0_0_0

ncraggs

We have a few blogs on this which might help:

http://www.firstintuition.co.uk/aat-level-4-focus-on-financial-performance-fixed-overhead-variances/

http://www.firstintuition.co.uk/pq-article-fixed-overhead-variances-2/

Adele69

The e-learning on FOH variances in AAT Study Support is fairly good too. Learning them as formulas is instinctive when taking notes but probably misguided. I only learned these properly about a week before my FP exam and so glad I did because it made the exam a breeze, when I was still getting the volume ones wrong and mixed up between total and expenditure variance just days before.

Bertie

Don't just learn what you read over two pages of a study text.

Read the initial synopsis of the subject.

For subjects you either don't understand, or don't enjoy you'll need to read more of.

Anything related to costings and management accounting head over to Google, at the end of your search string make sure you include CIMA.

Get yourself some figures, create a product, costs, overheads etc etc.

Start plugging it into a spreadsheet - see how the data starts to turn into information.

What happens when X increases, Y decreases and such.

If you just learn the formulas you will forget them, what you need to do is understand what the formula is doing.

Just my 2p