PCR

System
System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
edited June 18 in AAT student discussion
Hi,

I have concentrated so much on the PEV exam that i think i am totally unprepared for PCR.

If anyone could give me any advice on what they are revising etc i would be very grateful!!
ยซ13

Comments

  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    If you list some problem areas you have I'll try to help you once I'm back from my DFS exam.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Hi,

    Thankyou very much.

    The first area that i am confused on (It probably seems so silly)is the layout of the absorpion operating statement and the marginal one.

    and how to remember them etc.

    Thanks
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Oh and good luck in your DFS exam!
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Hi Stacy

    Absorption costing/statement:

    Sales

    Direct Costs
    direct materials
    direct labour
    direct expenses

    Indirect Costs
    variable overheads
    fixed overheads
    indirect expenses

    Profit

    Marginal costing/statement:

    Sales

    Variable Costs
    variable direct materials
    variable direct labour
    variable direct expenses
    variable overheads
    CONTRIBUTION

    Fixed Costs
    fixed direct costs
    fixed overdeads

    Profit

    If we get a marginal costing/statement to do we will probably be given a "Semi-Variable cost" i.e Electricity in which case you must calculate the variable and fixed elements and spilt them into the correct parts of the statement.

    Anymore questions just ask away :)

    Regards

    Dean
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Dean you are a god!!

    Just going to attempt a couple of past papers and then I'll prob post some more queries at lunch!

    Thanks!!
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Which paper are you doing...

    Regards

    Dean
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Hi,

    I attempted a past paper last night and it went ok considering i hadn't spent anytime revising, as all my time was spent on pev.

    I am ok on the production budget and the operating statement, i noticed on the dec 03 paper the other 2 bits that came up were limiting factors and linaer regression.

    What else is likely to come up?

    Shelley.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Dean,

    Just doing the June 2004 paper.

    Task 1 seems pretty straight forward, I think remembering all of the steps is going to be the hardest part as there is so much info to take into account.

    Stace
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Drafting budgets
    Flexing bugets
    (this seems to be the norm)

    memos could be
    Value Engineering
    Sampling
    Total Quality Management (TQM)
    Life Cycle
    Linear Regression
    Limiting Factors

    How longs a piece of string? :lol:

    Regards

    Dean
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR
    Stacey1 wrote:
    Dean,

    Just doing the June 2004 paper.

    Task 1 seems pretty straight forward, I think remembering all of the steps is going to be the hardest part as there is so much info to take into account.

    Stace

    Hope it goes ok, I might have a look at it myself :)

    Regards

    Dean
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    With the Absorption statement, would you total the direct costs and then total the indirect costs or would you just list them all in a line and total them at the bottom?

    Also you think ABC will appear in some part of it?

    Cheers
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    With the absorption statement you would just have a total, abit like a p&l a/c

    I hope ABC doesn't come up but if it does then that will be most of the paper lol!

    Regards

    Dean
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Yes that is what i am concerned about!!!!

    FYI

    If you are going to do the June 04 paper just to let you know that:

    Task 1.2 A i) the answer for material shortfall should be 10,440 not 10,444 as in their answer paper - seems that the AAT have made a typo!
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    I don't think ABC is in the PCR standards
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Dean,

    Why in task 2.1 of June 04 paper is the closing stock figure not included in the revised operating statement?

  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Because you are matching like with like and as the actual production volume is more than budgeted you need to strip out the stock, therefore not included.

    The flexible bugdet should be prepared on the answers calculated in Task 2.1 (a)

    Regards

    Dean
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR
    SandyHood wrote:
    I don't think ABC is in the PCR standards

    Now that is good to hear!

    Regards

    Dean
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Ah i see!

    Basically as the sales units produced is 8800 then the variable purchases have to be calculated at 8800 to show how much it cost to make 8800 units.

    Hence no stock!

    I get it now!! :D
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Oh i really hope that is the case with ABC!!

    I'm rubbish with my alphabet! Only joking, mind you i'm rubbish with Activity Based Costing to!
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Yeah all you're are doing with marginal is comparing the actual sales, forgetting about production, hence no stock... maybe thats a better explaination lol

    Regards

    Dean
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    ABC is breaking down each element that drives the cost of a product... its just every long winded to produce the report.

    Regards

    Dean
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    One thing that hasn't come up for a while is entering formulae and cell references into a mock excel spreadsheet (1.4 Dec 04). That might be worth taking a look at.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR
    JaneK wrote:
    One thing that hasn't come up for a while is entering formulae and cell references into a mock excel spreadsheet (1.4 Dec 04). That might be worth taking a look at.

    Dont think that'll ever come up again!

    That was a terrible question... I think we all could of calcualted the answer but giving the actual formula!!! Well thats just silly :lol:

    Regards

    Dean
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Hi

    I am probably being stupid but it seems when you have to do a total cost of absorption for production including overheads and you already have labour overtime costs you don't include these. Even when it says they are chargable to production overheads. You usually just multiply the fixed overhead absorption rate by the labour hours or whatever the measurement is. I don't understand the logic. Is it because actual fixed overheads are always absorbed in this way and any other cost is dealbt with separately?

    I've been going over past papers again last night and my frequent boo boo is to forget to carry forward any production or material wastage when dealing with later questions on limited resources so thats my tip to ensure you remember all elements throughout the section.

    Any help on above would be great, Tori

  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR
    I am probably being stupid but it seems when you have to do a total cost of absorption for production including overheads and you already have labour overtime costs you don't include these. Even when it says they are chargable to production overheads.

    I know exactly what you mean here, just unfortunatly i'm not sure on this either, I just remember to leave it out.

    Regards

    Dean
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Looking through the chapters in my book things i am going to have a read through (bar the obvious productions budgets and flexed budgets)are:

    PEST Analysis
    Incremental Budgeting
    Zero Based Budgeting
    Programme Based Budgeting
    High-low method

    As I feel that these may come up in a memo question.
    (I have no reason to think this! but just do)
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    The high-low method will be a calculation and you will need to be given 2 sets of budgeted data to work this out.

    The high-low method is calculating the variable cost.

    Regards

    Dean
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Dean
    Thanks for the PM.

    In the cost per unit etc type questions if you T account you will see how any indirect costs are debited to the overhead control account and ONLY the overhead absorbed is credited to Overhead control and debited to WIP (or finished goods)

    I hope that answers the same question you asked
    sandy.hood@chichester.ac.uk
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Hi Stacey

    Any chance you could explain:-
    Incremental budgeting and Programme based budgeting.
    Many thanks
    Eva
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Your welcome.

    Sandy, I still can't visualise this... can you explain further or differently :?

    Regards

    Dean

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