PEV - the logic?

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:25AM in AAT student discussion
I've got the formulas and the 'SAAB' triangle - but I still can't commit them to memory as I am struggling with the logic behind each equation. Has anyone got an idiot guide (and it will need to be an IDIOT GUIDE) to help me understand the logic behind which figures you use for each?

:roll:
Thanks in anticipation

Jackie

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV - the logic?

    There is a brilliant version on
    http://groups.msn.com/AATTechnician/general.msnw?action=get_message&mview=0&ID_Message=347&LastModified=4675571696833982248

    Best of luck
    Eva
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV - the logic?

    Hi Eva, thanks for your reply, but every time I try to access MSN my computer throws me off the internet. Is anyone else experiencing problems?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV - the logic?

    Hi,

    We have just been taught the "PURE AS" (or "Pure as as" as it reads) method for materials and labour: -

    same each time

    Price (material) standard - actual x Actual
    Useage (material) standard - actual x Standard
    Rate (labour) standard - actual x Actual
    Efficiency (labour) standard - actual x Standard

    and for Overhead variances : -

    ABC (the alphabet) Actual - Budget x absorb rate = Capacity
    SAE (Stamped addressed envelope) Standard - Actual x absorp rate = Efficiency
    SBV (Silly bloody variances) Standard - Budget x absorb rate = Volume

    I find silly rhymes for things like these make them easier to remember.

    Hope this helps you too!!!

    Jen

    This is the brilliant technique from MSN - hope this helps
    Eva
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV - the logic?

    Eva, thats wonderful. Jackie and I were discussing rhymes at college. I always remember things better with rhymes, you've saved me having to make them up.

    Still remember the maths Sin, Cos and Tan rhyme after 35 yrs, so fingers crossed that these stay in my adled brain. :D
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV - the logic?

    HI Gill

    Glad it has helped, but all thanks to Jen who originally posted the brilliance on MSN - it made my studying so much easier.

    Best of luck
    Eva
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV - the logic?

    Thanks Eva, we are having a study session on Wednesday night for PEV and this will really help.

    Jackie
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV - the logic?

    theres an article that I've read here

    www.accaglobal.com/publications/studentaccountant/256576

    that explains the reasoning behind the formulae. It is far far more than we need to know for technician but if you are one of those people like I am who really needs to know how things work then give it I go. I found it really useful.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV - the logic?

    Bobby, you are a star - that's exactly what I was looking for, and I can really understand the 'did use' 'should have used' approach. A light has been switched on!

    Thanks very much
    Jackie
    :lol:

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