PEV Dec 05 paper

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I am in the process of completing revision for PEV to sit in june. I have just completed dec 05 paper and have a couple of silly things that i cant work out and wondered if anybody could shed any light for me?
Section 2, task 2.2.
I cannot get the revised ROCE figure of 3542 and also why is the revised advertising revenue per employee not based on 71 employees?

Thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Dec 05 paper

    I found the revised ROCE was 12.76%

    This was based on revised Operating profit of £452 and revised net assets £3,542

    The revised net assets can be calculated in several ways, I did a revised balance sheet
    Fixed Assets £2,765
    Debtors £850
    Cash (assuming the reduction in debtors gives rise to an equal increase in cash, I have also added the increase in the profit)£527

    Creditors(£600)
    Net Assets £3,542
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Dec 05 paper

    Many thanks, didn't add reduction in debtors back onto profit.

    still not sure about question re number of employees, have given up and gone onto another paper!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Dec 05 paper

    I took this collection of quotes from the exam paper
    Extracts from the latest operating statements of LNG Ltd for the year ended 30 November 2005
    Other operating data LNG Ltd
    Number of employees 70
    the following improvements were identified
    A credit controller could be employed

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Dec 05 paper

    I agree with that but task 2.2 (b) asks you indicate the overall effect the improvements have on the performance indicators. As one of the improvements is to employ a credit controller
    I would have thought that the advertising revenue per employee would have to be calculated on 71 employees not 70 as is suggested in the answer?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Dec 05 paper

    So would I

    Just because it is a suggested answer doesn't mean it has to be right

    I think there have been quite a few errors recently, see PEV Dec 06
    http://forums.aat.org.uk/forums/posts/list/15597.page;jsessionid=9496792AA65BEFBC7AD34DC258BC6E7B
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Dec 05 paper

    PS

    I've just looked at my answer
    I used 70 employees too, so I'm also wrong !!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Dec 05 paper

    This question has been worrying me as I had used 71 employees. I havent been to college for a couple of weeks due to half term and a holiday but asked our lecturer today and he said the answer should be 71 employees. Decided to write this even though I see Sandy Hood has beaten me to it!!!! :oops:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Dec 05 paper

    Many thanks for your thoughts, glad to know that i wasn't going ever so slightly mad!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Dec 05 paper

    Quiche
    This might help, I hope.

    Sandy

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