pev paper 2.2

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:09AM in AAT student discussion
I have just downloaded the PEV questions from AAT website. Task 2.2 clearly states the following'Using the financial and other information from the May management meeting (which is only mentioned in Section 2) write a report etc.....<BR><BR>I am under the impression to do this task you had to refer back to Section 1 for the revised analysis of monthly budgeted fixed overheads using ABC. I do not think this question clearly stated the information available, once you have finished a section do you usually have to refer back to complete tasks in the next section. <BR><BR>What does everyone else think?

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    pev paper 2.2

    I thought the same as you at first but, having difficulty with the numbers (i.e. they just didn't make sense!), I paused and thought "hang on, in no other paper have we ever looked to a different section to answer a question". So... I crossed out my confusing calculations and went ahead with the report, based only on the info in section 2.<BR><BR>I think AAT were a bit naughty to use the same company throughout when they rarely do this. But then, this is the final year, it was never meant to be easy!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    pev paper 2.2

    It doesn't say anywhere that they are going to use ABC for the overheads. I think it was a very confusing question. I based my answer on not using ABC, as far as I can remember, and recommended that they did not sub-contract out. Although, I did hedge my bets and say that there would be other costs involved in not contracting out and that they shouldn't base their decision on the gross profit. Maybe if I had used the figures for ABC I would have given a different answer. Perhaps the AAT will take this into account when marking.

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