PCR - December 2005

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
HI Everyone

Hope revision is going well.

Could I ask for some help on the PCR paper task 1.4 (c) which asks for the budgeted operating statement. Why do you not include the closing stock in the statement - I know it is really obvious, but panic sets in at this late stage.

Many thanks
Eva

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PCR - December 2005

    Hi EvaG

    Check out the other PCR thread as we have just spoken about that.

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PCR - December 2005

    All you're are doing with marginal is comparing the actual sales, forgetting about production, hence no stock...

    Regards

    Dean

    p.s thats a copy and paste from the other thread, for your ease :D
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PCR - December 2005

    Many thanks Dean, you are a real gem
    Eva
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PCR - December 2005

    Eva
    The current examiner prefers the layout we used on the revision day where you
      state turnover as price x units sold
    then
      list the variable costs of production
      deduct the variable cost of the closing stock
    to give you the
      vaiable cost of sales
    then
      find the contribution
    deduct
      the fixed costs
    to give
      the profit
    This is a different format to the one used in earlier examiner's suggested solutions
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PCR - December 2005

    Having said that, the previous examiner's approach will still get you a pass.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PCR - December 2005

    Hi Sandy

    Thanks for the advice. I did try to convert, but it didn't work so I have stuck with my original knowledge.
    Thanks again
    Eva
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PCR - December 2005
    SandyHood wrote:
    Eva
    The current examiner prefers the layout we used on the revision day where you
      state turnover as price x units sold
    then
      list the variable costs of production
      deduct the variable cost of the closing stock
    to give you the
      vaiable cost of sales
    then
      find the contribution
    deduct
      the fixed costs
    to give
      the profit
    This is a different format to the one used in earlier examiner's suggested solutions

    Sandy is that what I said in the other thread... just want to make sure I've got it right in my own mind and I dont want to give incorrect info to others, could you just check, tis on the first page :D

    Regards

    Dean

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