PEV exam

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi everyone

I know we should not be thinking about the exam as it has gone and alot of us still have PCR on thursday but i just wanted to ask a few questions to try and set my mind at ease.

Here is what i did just wonderng if anyone else was like mine.

1.1 all varinaces ok, asorption costing was 11500f.
i did the marginal costing statment as just variable costs and got a varince of 4500a. i never included overheads as they arent variable but a few put that in so do you think i wil still get marks ?

1.2 seasonal variation i just deducted postives & added negatives and ended up with 6% growth rate is tha ok ?
c- i spoke about the fact that sales are different over different seasons and he although they are down some months hey are up others. is this ok ?

2.1 i got all my indicators ok apart from

stock - stock/cos x 12
capacity - actual hrs / budget hrs
effieincy - std hrs for actual / actual hrs

are they ok ?

b- i am not very good with word so i just waffled what did anyone else put for the difference ???

c- i added both net profits & deducted admin 400000
i then added net asset together 7000000
i then calculated roce and got 14%

2.2 - target cost 1000 - 55% = £450

I know its abit long but if anyone as these answers please reply.

Thanks and good luck thursday.

come on england



Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV exam

    Pretty much the same mate! Don't worry we'll be fine - read the chief assessors report for the December PEV exam on AAT website and the common quote is "this question was answered poorly!" The pass rate was still about 67% though so we'll be ok.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV exam

    cheers mate you have made my morning. back to the bok for me know.

    By the way i love your picure of barry proudfoot !!!

    Good luck with the rest of your exams
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV exam

    i didnt deduct admin i added it back into the profit because i thought if you deducted it again from the profit, you have took it off twice (once initially and again when acquiring) so i thought you needed to "give it back" so to speak :D
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV exam

    I added into profit too. I think I got 14.78% as the ratio.

    Profit 460
    Plus 400 (saving)
    Plus 175 (First Disc profit)
    =£1,035/£7m
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV exam

    Sorry i didnt take the admin off. what i meant was i took it off the expenses therefore i increased net profit. I had the exact same answer as petrol monkey so if he is correct so am, sorry about that...
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV exam

    yes, that sounds familiar :):)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV exam

    is that the pass rate of people that passed, or the pass rate you need to pass the paper?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV exam

    The percentage of people that passed the paper. I don't think there is an official pass mark - you just need to show competence.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV exam

    its not very high then is it?

    :?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV exam

    OK - what I don't understand is......perhaps not everyone has done DFS yet - in which case how would they know how to consolidate the profits and not include the net assets of First Disc.

    I did two separate new ROCE's
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV exam

    I can answer that based on what I did...... I guessed!!!! :lol:

    I stared at that question and thought... "mmm do I need to calculate 2 roces or consolidate and do 1" at the end of it, I thought that because we were acquiring First Disc their costs would stay the same apart from the obvious note of the reduction in admin costs so I just added them together. :?

    I did make a note however that the consolidation was based on the assumption that all other costs stay the same.

    It was tricky I thought, but what can we all do about it now. It's not like we can even see how we've gone wrong cos it's just a "successful" or "unsuccessful" result.

    Oh well!!! :roll:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV exam

    It tells you that brake is buying first disc, therefore all there costs, profits etc become part of first disc surely?

    It tells you that you are buying the fixed assets of first disc, so that would suggest not to use them.

    I am concerned about the seasonal variation I cocked that up good! but was fine with variances, may pick up some marks for marginal although not all. Section 2 was fine.

    Still not holding up any hope though
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV exam

    Hey there

    I think I have fluffed the acquisition question up but it sounds like there is lots of confusion about it so its probably going to have a low pass rate. Might get some marks for some of it - but it was like nothing I have seen before.

    Rest was alright I suppose - wasn't totally sure about marginal cost as usually that means not fixed costs but in text books you can calc the fixed overhead expenditure variance. I just left it out.

    Oh well prob. done ok I hope as I hate costing and would love to chuck those books from the nearest tall building (not really I am sure it will come in useful at some stage).

    Good luck if you are doing PCR and come on England. At least I can have a few beers down the pub thursday. 8)

    Torix
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV exam

    All looks good to me 5-times, although a couple of the ratio's you put appear to be wrong...

    2.1 i got all my indicators ok apart from

    stock - stock/cos x 12
    capacity - actual hrs / budget hrs
    effieincy - std hrs for actual / actual hrs

    I think they were this:

    Stock - cos/stock (not times'd by months or days) (I still did mine the other way round! (stock/cos))

    Capacity - your calculation is fine :)

    efficiency - actual hrs / std hrs

    So it just looks as though some of the figures have been transposed, if you have shown your workings you'll be up half marks! Thats what i'm telling myself anyway :lol:

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV exam



    My answers for section 2, and soon i will tell my answers 4 section 1:

    2.1)

    a)

    i) 40% - 55%
    ii) 16.5% - 25%
    iii) 14.6% - 25%
    iv) 8.9% - 5%
    v) 11.5% -7%
    vi) 1.94 months – 2.96 months
    vii) 91.5% - 110%
    viii) 106.7% - 98.9%

    c) 1035/7000 = 14.8%

    Task 2.2

    b) £450

    i am sure that my revised ROCE is wrong, but i worked it out like that!!

    good luck all

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV exam

    If your ROCE is wrong then mine is too :lol:

    Regards

    Dean

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