Variance Formula - Weird Way To Remember
Ellis
Registered Posts: 11
Hey all,
I know for me remembering Variance formula was probably the most difficult bit of MDCL.
If you're struggling take a look at the attached, I know they're very weird but if I remembered these 7 sentences I could work out the variances correctly - I find it easier to remember sentences and pull them apart than remember a random string of formulae.
The first word in the sentences indicate which formula:
"Princess" would be a PRIce variance.
"Unhappy" would be a Usage variance. etc.
The name of the person first mentioned in the sentences indicates the order of subtraction - ie: Sally means Standard before Actual, and Ash means Actual before Standard.
The first letter of every word in the sentence indicates the formula
Sentence to remember: Princess Sally Crept Past Upto A Queen - PSCPUAQ
Princess = Price Variance / Labour Rate
Sally = Standard before Actual
Price Variance = Standard Cost Per Unit x Actual Quantity - Actual Cost Per Unit x Actual Quantity.
Some of you will probably just think it's weird and go back to another way to remember, but if you're really struggling like I was they might just help, I'd rather share it even if it helps one person!
Cheers
I know for me remembering Variance formula was probably the most difficult bit of MDCL.
If you're struggling take a look at the attached, I know they're very weird but if I remembered these 7 sentences I could work out the variances correctly - I find it easier to remember sentences and pull them apart than remember a random string of formulae.
The first word in the sentences indicate which formula:
"Princess" would be a PRIce variance.
"Unhappy" would be a Usage variance. etc.
The name of the person first mentioned in the sentences indicates the order of subtraction - ie: Sally means Standard before Actual, and Ash means Actual before Standard.
The first letter of every word in the sentence indicates the formula
Sentence to remember: Princess Sally Crept Past Upto A Queen - PSCPUAQ
Princess = Price Variance / Labour Rate
Sally = Standard before Actual
Price Variance = Standard Cost Per Unit x Actual Quantity - Actual Cost Per Unit x Actual Quantity.
Some of you will probably just think it's weird and go back to another way to remember, but if you're really struggling like I was they might just help, I'd rather share it even if it helps one person!
Cheers
0
Comments
-
cool ! that is very helpful!
I have my own method to remember,:
AM X AP
AM X SP
BM X SP
AH X AR
AH X SR
BH X SR
A= Actual M=Material P=Price B=Budgeted (standard x actual production) S=Standard R=Rate H=Hours
I need to get used to the variances for Fixed overheads1
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 18.9K For AAT students
- 259 NEW! Qualifications 2022
- 146 General Qualifications 2022 discussion
- 9 AAT Level 2 Certificate in Accounting
- 37 AAT Level 3 Diploma in Accounting
- 64 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 274 VAT
- 92 Software
- 274 Tax
- 137 Bookkeeping
- 7.3K General accounting discussion
- 193 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 352 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 590 Job postings
- 17 Who can benefit from AAT?
- 36 Where can AAT take me?
- 44 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 65 AAT membership