PEV Help On ABC Topic

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:08AM in AAT student discussion
First of all good luck to everyone for next week<BR><BR>I am revising for the PEV Exam and understand the backward variance (If it comes up) but i am really confused about the following which was in the exam tips:<BR><BR>''consider how computer packages aid movement to ABC and problems implementing ABC, ABC calculations and TAC v MC.''<BR><BR>I dont really understand ABC, Does anyone have any tips or advice? Also what type of question could involve TAC v MC???<BR><BR>1 more thing, in what way could stock be brought into variances, and does anybody have an example?<BR><BR>Thanks,<BR><BR>Dan

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV Help On ABC Topic

    If anyone does have any advice, please email me anything that could help<BR><BR>my email is: mayes_sufc@yahoo.co.uk<BR><BR>Thanks
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV Help On ABC Topic

    Me to!<BR><BR>my email is: maria.chandler@symbian.com<BR>Thanks
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV Help On ABC Topic

    Hi<BR><BR>Please could I also have a copy if anyone has any tips.<BR>Have just about got the varinaces now, it's all the extra little wordy questions that seem to be tripping me up.<BR><BR>sl_abbott@hotmail.co.uk<BR><BR>Would really appreciate it if anyone could help.<BR>Good luck to all!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV Help On ABC Topic

    I am expecting an ABC question on the PEV paper next week<BR><BR>ABC is another way of dealing with overhead costs<BR><BR>Look at the ACTIVITIES eg material handling or setting up machines for production.<BR><BR>Then take the total budgeted overhead cost of each activity and divide it by the number of times the activity is expected to take place. <BR>This gives you a charge out rate for each activity.<BR><BR>Next multiply the number of activities <b>each product </b>is expected to cause by the charge out rate for each activity.<BR>You should now have a total overhead for each product based on total expected output and made up of all the activities each will cause to take place.<BR><BR>Now divide these totals by the expected production of each product to find the overhead cost per unit of each product.<BR><BR>This is likely to help us to be more precise about product costs<BR>.<BR>But ABC makes us find more data than traditional overhead analysis<BR>and Process more data<BR><BR>So it would be easier and quicker if we used a computer<BR><BR>Sandy<BR><BR><BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV Help On ABC Topic

    sandy where do you think this question will fall

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