mdcl

anyone currently on management in decision and control unit?and can you kindly share tips on how you revising for the module?

Comments

  • jadeterryjadeterry Posts: 12Registered
    I'm in the same boat!!

    My teacher advised to ensure I am fully competent with answering standard costing variances questions and also the written questions as then more than half of the exam is covered. I am gong to spend the next 2 weeks going over past papers and revising absorption/marginal/performance indicator/ABC questions.
  • MannaesiMannaesi Posts: 15Registered
    This module is giving me hectic time......got 62% on last paper but looking @my exam feedback it looks like i still have problems with statistical information and the standard costing and variance analysis report as i was below requirement on those.I exceeded the absorption/marginal and ABC question

    can you please keep sharing your question so we share ideas,i do the [email protected]
  • Pian32Pian32 Posts: 61Registered
    edited October 30
    Make sure you have a good understanding of how the ratio and variance equations work. Not just be able to use them but manipulate them to get different bits of information and how you can use that to work out something else. (e.g getting Revenue by working the gross profit % equation backwards and then using that figure to work out the operating profit %)

    On the written still show any calculations that there isn't a separate box for and explain why it's useful. Compare it to what was given and say why it shows something that could be better or worse.
  • MannaesiMannaesi Posts: 15Registered
    Thanks @Pian32 ,will try to understand them more.

    On the written questions i thought i understood them but when it comes to explanation in detail i fail.

    like this question,its on bpp aq16 question bank,(pg)228 and i think its the same as sample assement,can you help me with it?

    1)Ezo ltd has provided the following management accounting equation pertaining to its operation during prior month.

    Standard cost of actual production 600 000
    Variances
    Material price variance 25000
    Material Usage (7000)
    Labour rate 10000
    Labour efficiency (10000)
    Fixed overhead expenditure(7000)
    Fixed overhead capacity (5000)
    Fixed overhead efficiency (6000)
    Actual cost of production 600 000


    Recent activities,
    Storage facilities:Alternative storage storage facilities were rented at the beginning of last month leading to lower monthly payments.

    Machinery:At the beginning of last month,an investment was made in more modern and efficient machinery which has more much higher depreciation charger.

    Staff upgrade:Due to the acquation of new machinery at the beginnning of last month,a number of technology engineers were hired to operate the machinery,enabling the business to lay off a number of unskilled workers.


    question

    1)Write a memo to a collegue explaining the causes of the following variances and explaining how this above recent activities will have affected variance.

    a)material price variance(3marks)

    b)Labour rate(#3)

    c)material usage variance(3)

    d)labour efficiency variance(3)

    e)fixed overhead expenditure(3)

    f)fixed overhead capacity(3)

    g)fixed overhead efficiency(3)
  • Emmalouise18Emmalouise18 Posts: 37Registered
    edited October 30
    Mannaesi said:

    Thanks @Pian32 ,will try to understand them more.

    On the written questions i thought i understood them but when it comes to explanation in detail i fail.

    like this question,its on bpp aq16 question bank,(pg)228 and i think its the same as sample assement,can you help me with it?

    1)Ezo ltd has provided the following management accounting equation pertaining to its operation during prior month.

    Standard cost of actual production 600 000
    Variances
    Material price variance 25000
    Material Usage (7000)
    Labour rate 10000
    Labour efficiency (10000)
    Fixed overhead expenditure(7000)
    Fixed overhead capacity (5000)
    Fixed overhead efficiency (6000)
    Actual cost of production 600 000


    Recent activities,
    Storage facilities:Alternative storage storage facilities were rented at the beginning of last month leading to lower monthly payments.

    Machinery:At the beginning of last month,an investment was made in more modern and efficient machinery which has more much higher depreciation charger.

    Staff upgrade:Due to the acquation of new machinery at the beginnning of last month,a number of technology engineers were hired to operate the machinery,enabling the business to lay off a number of unskilled workers.


    question

    1)Write a memo to a collegue explaining the causes of the following variances and explaining how this above recent activities will have affected variance.

    a)material price variance(3marks)

    b)Labour rate(#3)

    c)material usage variance(3)

    d)labour efficiency variance(3)

    e)fixed overhead expenditure(3)

    f)fixed overhead capacity(3)

    g)fixed overhead efficiency(3)



    Hello,

    It took me 4 times to pass this exam. All being a few marks off each time. I personally feel with the written questions there is a method and if you follow the method then you will pass. Written questions need structure to them which is:

    Make your point -> Show evidence -> Use examples -> Explain your examples -> Link back to the question.

    Material Price variance of 25000 favourable could be: Material cost is less than budgeted due to bulk buying, taking advantage of early settlement discounts, cheaper supplier/ poor budgeting. The new efficient machinery is likely to be upto date and therefore use less material per unit so this saves the company money as they don't have to purchase as much material.

    Labour Rate Variance of 1000 favourable could be: Less labour staff due to laying off unskilled workers, which was not budgeted for. This could be incorrect budgeting also by the budget team.

    Material Usage Variance of (7000) Adverse could be: The new machinery may result in a high level of wastage therefore they will use less and waste more. This will not have been budgeted for which is why its adverse.

    Labour Efficiency Variance of (1000) adverse could be: The labour time to produce each unit has risen so its taking longer amount of time to produce each unit which wasn't budgeted for therefore this is why the variance is adverse.

    Fixed overhead expenditure of (7000) adverse: This is due to the new machinery with increased depreciation charge. This will have not been budgeted for.

    Fixed overhead efficiency of (6000) adverse: This is due to less units produced than budgeted for. This could be due to the change over in labour workers also the new machinery that could take longer to produce each unit.


    When answering each written variance question, begin with stating whether the variance is adverse or favourable. Then define what that adverse/favourable variance is. E.g. A material price variance of £5000 favourable happens when the business spends less money on materials than they budgeted for.

    Then go onto to explain reasons why the variances have happened. Use examples and explain the link back to the question (recent activities)

    If you can, link each variance together if possible - this gets you more marks!
  • Pian32Pian32 Posts: 61Registered
    Not much to add to @Emmalouise18 though I would state what each variance looks at as well. e.g that the material price variance looks at the variance in price not amount used etc.
  • MannaesiMannaesi Posts: 15Registered
  • IshratIshrat Posts: 7Registered
    > @Mannaesi said:
    > anyone currently on management in decision and control unit?and can you kindly share tips on how you revising for the module?

    I got my results and just managed to scrap through this unit with 72%.

    I think the key elements are understanding the variances inside out. Quite few tasks relate to this concept whether writing or numerical. Also learn the ratios/ contributions and ABC costing.

    The examiner report and AAT online practise assessments helped along with YouTube videos. I would watch quick summary videos to get overall understand of the topic, which I found easy to understand and straight to the point.

    All the best, hopefully you will get through with this one soon.
  • MannaesiMannaesi Posts: 15Registered
    @Ishrat ,congrats bro on your results and thanks for the motivation i will also soon get a competent.

    To be honest i thought i understood them variances very well last time before i sat for my exam but looking it my assement feedback i think i have to go back there again and the other task giving me a little prob is statistical techniques.

    By the way which study resources did you use,?maybe you still have something in pdf to share with me
  • IshratIshrat Posts: 7Registered
    > @Mannaesi said:
    > @Ishrat ,congrats bro on your results and thanks for the motivation i will also soon get a competent.
    >
    > To be honest i thought i understood them variances very well last time before i sat for my exam but looking it my assement feedback i think i have to go back there again and the other task giving me a little prob is statistical techniques.
    >
    > By the way which study resources did you use,?maybe you still have something in pdf to share with me

    Thank you, I know how it feels.. To be honest I was 100% convinced that I failed this unit by few %. I did not understand one whole task and it was Statistical technique , the question was much harder than what I assumed. Before taking exam, I thought this task is the most easiest of all. I wasted soo much time on the Task that I rushed everthing else, I didn't even get chance to even read what I wrote and I knew I must have made many mistakes. For some written questions, I didn't even read questions properly and just started writing an answer as I had no time.

    Apart from statistical question, other tasks were very similar formatted to practice papers AAT. Also I found ratio questions harder, as I didn't know all ratios that well. I was more prepared for written tasks, which helped me to managed to get through with this unit.

    I only had a week and half to revise on this unit, so I practised and learnt from past papers and mainly from aat assessments, plus I watched a lot of videos.

    Just keep practicing, you'll be fine. Try to cover every topic, even if you know the main summary of the topic. It helps especially in written tasks, as the written questions can relates to many different topics.

    All the very best.
  • MannaesiMannaesi Posts: 15Registered
    @Ishrat ;thanks bro will keep that in mind and hopefully will pass this one
  • lorraine framelorraine frame Just Joined Posts: 8Registered
    I would appreciate any help on the Decision and Control Exam, I have now sat it a few times with no luck! I don't think the exam reflects the study materials we have. I have studied relentlessly, I have BPP books, Kaplan books and Osborne as well as online mocks.
    I sat the exam again 4 weeks ago and waiting on the result, but I know I have failed as I said before I don't think the exam reflects my study materials.
    If anyone can offer me a glimmer of hope I would appreciate it! just this one and 3 others and then I'm done, quite literally!!!
    Ever hopeful
    Lorraine.
  • MannaesiMannaesi Posts: 15Registered
    Hello,hopefully you will come competent dear


    can you please share with me your study material if perhaps they are in [email protected] Frame
  • Emmalouise18Emmalouise18 Posts: 37Registered

    I would appreciate any help on the Decision and Control Exam, I have now sat it a few times with no luck! I don't think the exam reflects the study materials we have. I have studied relentlessly, I have BPP books, Kaplan books and Osborne as well as online mocks.
    I sat the exam again 4 weeks ago and waiting on the result, but I know I have failed as I said before I don't think the exam reflects my study materials.
    If anyone can offer me a glimmer of hope I would appreciate it! just this one and 3 others and then I'm done, quite literally!!!
    Ever hopeful
    Lorraine.


    Hi Lorraine,

    Sorry to hear you are struggling with Decision and Control. It took me 4 times to pass it. It is an awful exam :(

    I bought the BPP question bank book as this book has so so many different questions on each topic. I also used the Kaplan books.

    I never thought I'd pass this exam, but I did with 72%. I spent 2-3 hours every night revising and all day Saturday and all day Sunday. It was so boring and repetitive but it does pay off.

    What feedback are you getting please? I can try and be of some help :) x
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