ECR Exam - what I put
twinmeister
Registered Posts: 122 Dedicated contributor 🦉
From memory so apologies if I get the numbering wrong
Section 1
1.Stock card - FIFO (had to be careful as costs per unit were asked for in pence not pounds)
2.Stock policy - hadn't been followed in that stocks had fallen below minimum allowed. EOQ waffled - we were specifically told by tutor this was no longer on the syllabus
3.Wages control - couldn't believe it was as simple as just copying down info already provided. Used all 6 lines - Dr Maintenance Cr Wages Control 7000, 4000, 3000 I think
4. Apportionment - Relatively straightforward until Pilot and Crew wages. Wasn't sure whether I should used miles travelled as basis or employee numbers. There were employee numbers for the other cost centres which were irrelevant so I decided to simply add Charter and Schedule employee numbers and apportion on that basis. Wrote a note giving my reasoning, but of all the paper this was the shakiest bit for me.
5. OAR - Scheduled £317 (or £319 can't remember) Charter £300
6. Under-absorbed by £12,000 - Dr Profit and Loss and will reduce reported profit
Section 2
1. 5000, 6000, 7000 bit - This question out of all of them was the most fiddly, but I found this relatively straightforward once I got over the £000's issue. The two tricky bits were the semi-variable costs - fixed £600,000 then £50 per mile travelled for landing fees. Put that the revenue was £2,500,000 plus £500 x 0.9 on all miles traveled over 5000 to get the 10% bit. In the stress of an exam situation though it was a bit too much to be this fiddly I think. I agree with others that there was a big jump between the different profitability per mile between 5000, 6000, 7000, but can't remember exact figures.
2. Relevant, Irrelevant costs - not studied or found in books, but guessed relevant were variable costs as those that increased with output and were therefore relevant to the scenario and irrelevant were fixed as those remained constant and were therefore irrelevant to the scenario decision.
Included variable part of landing fees as relevant with other variable costs and fixed part of landing fees in irrelevant.
3. Target profit £60,000 - forgot to add in fixed part of landing fees, but added fixed costs to target profit then divided result by contribution per unit. Got something like 4995?
4.Limiting factors - again the £000's was a bit nasty. C 1st, A 2nd, B 3rd. 8000 hours for B, which was 50% of miles traveled. The fact that 1/2 a flight isn't really viable as others have spotted didn't even enter my head, so may have got that wrong?
5.Fleet investment calcs - starightforward. Included 'scrap value' as a revenue in year 3 for both and then worked out discounted cash flow accordingly.
6. Memo - advised A because it had greater NPV (£380 as regards £320 not sure of figures?). Rate increase from 16% to 18% said it would reduce the NPV, but as long as it remained positive the investment would be viable although less attractive. Gave answer of 'Payback period' for the alternative method.
Interested to see if others put what I did, especially on 1.4
Section 1
1.Stock card - FIFO (had to be careful as costs per unit were asked for in pence not pounds)
2.Stock policy - hadn't been followed in that stocks had fallen below minimum allowed. EOQ waffled - we were specifically told by tutor this was no longer on the syllabus
3.Wages control - couldn't believe it was as simple as just copying down info already provided. Used all 6 lines - Dr Maintenance Cr Wages Control 7000, 4000, 3000 I think
4. Apportionment - Relatively straightforward until Pilot and Crew wages. Wasn't sure whether I should used miles travelled as basis or employee numbers. There were employee numbers for the other cost centres which were irrelevant so I decided to simply add Charter and Schedule employee numbers and apportion on that basis. Wrote a note giving my reasoning, but of all the paper this was the shakiest bit for me.
5. OAR - Scheduled £317 (or £319 can't remember) Charter £300
6. Under-absorbed by £12,000 - Dr Profit and Loss and will reduce reported profit
Section 2
1. 5000, 6000, 7000 bit - This question out of all of them was the most fiddly, but I found this relatively straightforward once I got over the £000's issue. The two tricky bits were the semi-variable costs - fixed £600,000 then £50 per mile travelled for landing fees. Put that the revenue was £2,500,000 plus £500 x 0.9 on all miles traveled over 5000 to get the 10% bit. In the stress of an exam situation though it was a bit too much to be this fiddly I think. I agree with others that there was a big jump between the different profitability per mile between 5000, 6000, 7000, but can't remember exact figures.
2. Relevant, Irrelevant costs - not studied or found in books, but guessed relevant were variable costs as those that increased with output and were therefore relevant to the scenario and irrelevant were fixed as those remained constant and were therefore irrelevant to the scenario decision.
Included variable part of landing fees as relevant with other variable costs and fixed part of landing fees in irrelevant.
3. Target profit £60,000 - forgot to add in fixed part of landing fees, but added fixed costs to target profit then divided result by contribution per unit. Got something like 4995?
4.Limiting factors - again the £000's was a bit nasty. C 1st, A 2nd, B 3rd. 8000 hours for B, which was 50% of miles traveled. The fact that 1/2 a flight isn't really viable as others have spotted didn't even enter my head, so may have got that wrong?
5.Fleet investment calcs - starightforward. Included 'scrap value' as a revenue in year 3 for both and then worked out discounted cash flow accordingly.
6. Memo - advised A because it had greater NPV (£380 as regards £320 not sure of figures?). Rate increase from 16% to 18% said it would reduce the NPV, but as long as it remained positive the investment would be viable although less attractive. Gave answer of 'Payback period' for the alternative method.
Interested to see if others put what I did, especially on 1.4
0
Comments
-
i failed my exam0
-
Apportioning Overheads
Is it just me or did anyone else think that Pilots Salaries were a direct cost and therefore not an overhead? I really deliberated and in the end did not include them in the table as we had a similar question on our simulation - our tutor told us not to include it as it was a trick question.
Only Indirect labour is included in Overheads and we already had that so Pilot wages must be a Direct cost, so not an Overhead???0 -
twinmeister wrote: »From memory so apologies if I get the numbering wrong
Section 1
1.Stock card - FIFO (had to be careful as costs per unit were asked for in pence not pounds)
2.Stock policy - hadn't been followed in that stocks had fallen below minimum allowed. EOQ waffled - we were specifically told by tutor this was no longer on the syllabus
3.Wages control - couldn't believe it was as simple as just copying down info already provided. Used all 6 lines - Dr Maintenance Cr Wages Control 7000, 4000, 3000 I think
4. Apportionment - Relatively straightforward until Pilot and Crew wages. Wasn't sure whether I should used miles travelled as basis or employee numbers. There were employee numbers for the other cost centres which were irrelevant so I decided to simply add Charter and Schedule employee numbers and apportion on that basis. Wrote a note giving my reasoning, but of all the paper this was the shakiest bit for me.
5. OAR - Scheduled £317 (or £319 can't remember) Charter £300
6. Under-absorbed by £12,000 - Dr Profit and Loss and will reduce reported profit
Section 2
1. 5000, 6000, 7000 bit - This question out of all of them was the most fiddly, but I found this relatively straightforward once I got over the £000's issue. The two tricky bits were the semi-variable costs - fixed £600,000 then £50 per mile travelled for landing fees. Put that the revenue was £2,500,000 plus £500 x 0.9 on all miles traveled over 5000 to get the 10% bit. In the stress of an exam situation though it was a bit too much to be this fiddly I think. I agree with others that there was a big jump between the different profitability per mile between 5000, 6000, 7000, but can't remember exact figures.
2. Relevant, Irrelevant costs - not studied or found in books, but guessed relevant were variable costs as those that increased with output and were therefore relevant to the scenario and irrelevant were fixed as those remained constant and were therefore irrelevant to the scenario decision.
Included variable part of landing fees as relevant with other variable costs and fixed part of landing fees in irrelevant.
3. Target profit £60,000 - forgot to add in fixed part of landing fees, but added fixed costs to target profit then divided result by contribution per unit. Got something like 4995?
4.Limiting factors - again the £000's was a bit nasty. C 1st, A 2nd, B 3rd. 8000 hours for B, which was 50% of miles traveled. The fact that 1/2 a flight isn't really viable as others have spotted didn't even enter my head, so may have got that wrong?
5.Fleet investment calcs - starightforward. Included 'scrap value' as a revenue in year 3 for both and then worked out discounted cash flow accordingly.
6. Memo - advised A because it had greater NPV (£380 as regards £320 not sure of figures?). Rate increase from 16% to 18% said it would reduce the NPV, but as long as it remained positive the investment would be viable although less attractive. Gave answer of 'Payback period' for the alternative method.
Interested to see if others put what I did, especially on 1.4
Yeh pretty much identical to my answers, messed up on relevant costs compared it to revenue expenditure, and EOQ i waffled a bit but might be ok. I did not notice that the limiting factor answer was half a route either, I took it to mean half of the journeys that took place on that route. The word route meant a route that was completed on a number of occasions maybe 16 x 1000 mile journeys rather than literally one route, otherwise it would n't be a particularly good airline that only completed three flights a month albeit these circling the globe about three times each!!0 -
twinmeister wrote: »From memory so apologies if I get the numbering wrong
Section 1
1.Stock card - FIFO (had to be careful as costs per unit were asked for in pence not pounds)
2.Stock policy - hadn't been followed in that stocks had fallen below minimum allowed. EOQ waffled - we were specifically told by tutor this was no longer on the syllabus
3.Wages control - couldn't believe it was as simple as just copying down info already provided. Used all 6 lines - Dr Maintenance Cr Wages Control 7000, 4000, 3000 I think
4. Apportionment - Relatively straightforward until Pilot and Crew wages. Wasn't sure whether I should used miles travelled as basis or employee numbers. There were employee numbers for the other cost centres which were irrelevant so I decided to simply add Charter and Schedule employee numbers and apportion on that basis. Wrote a note giving my reasoning, but of all the paper this was the shakiest bit for me.
5. OAR - Scheduled £317 (or £319 can't remember) Charter £300
6. Under-absorbed by £12,000 - Dr Profit and Loss and will reduce reported profit
Section 2
1. 5000, 6000, 7000 bit - This question out of all of them was the most fiddly, but I found this relatively straightforward once I got over the £000's issue. The two tricky bits were the semi-variable costs - fixed £600,000 then £50 per mile travelled for landing fees. Put that the revenue was £2,500,000 plus £500 x 0.9 on all miles traveled over 5000 to get the 10% bit. In the stress of an exam situation though it was a bit too much to be this fiddly I think. I agree with others that there was a big jump between the different profitability per mile between 5000, 6000, 7000, but can't remember exact figures.
2. Relevant, Irrelevant costs - not studied or found in books, but guessed relevant were variable costs as those that increased with output and were therefore relevant to the scenario and irrelevant were fixed as those remained constant and were therefore irrelevant to the scenario decision.
Included variable part of landing fees as relevant with other variable costs and fixed part of landing fees in irrelevant.
3. Target profit £60,000 - forgot to add in fixed part of landing fees, but added fixed costs to target profit then divided result by contribution per unit. Got something like 4995?
4.Limiting factors - again the £000's was a bit nasty. C 1st, A 2nd, B 3rd. 8000 hours for B, which was 50% of miles traveled. The fact that 1/2 a flight isn't really viable as others have spotted didn't even enter my head, so may have got that wrong?
5.Fleet investment calcs - starightforward. Included 'scrap value' as a revenue in year 3 for both and then worked out discounted cash flow accordingly.
6. Memo - advised A because it had greater NPV (£380 as regards £320 not sure of figures?). Rate increase from 16% to 18% said it would reduce the NPV, but as long as it remained positive the investment would be viable although less attractive. Gave answer of 'Payback period' for the alternative method.
Interested to see if others put what I did, especially on 1.4
I concur with almost all the answers.
you have passed your ECR paper
congratulations!0 -
how did you get the target profit of 4995 as mine is something over 2 millons.
what i did was
fixed cost + 60,000 / 1115 = 2 millions0 -
Can't remember detail, but know the answer had to be less than 5000 miles as that was the basis of the calcs.
Pretty sure it asked for number of miles to be travelled to make a target profit of £60,000. If so then giving an answer in £ greater than 5000 doesn't make sense?0 -
Oh no! :ohmy: I dnt know why but i put Avco (avearge weighted cost) for the first one.
I found the past practice papers ok but when i did this one it was so hard, i ended up missing some questions out. If i fail i might just give up, cant be bothered with it anymore.0 -
Oh no! :ohmy: I dnt know why but i put Avco (avearge weighted cost) for the first one.
I found the past practice papers ok but when i did this one it was so hard, i ended up missing some questions out. If i fail i might just give up, cant be bothered with it anymore.0 -
i am fed up and waiting for my result, to show me the answer with the comment but they will not be appear till feb 18!
do the abroad's exam papers come to UK London for that they marking their exam papers?0 -
It was Fixed cost which I acn't remember the figure plus the 60,000 profit target divided by the contribution per mile, not the contribution total that I assume you used.how did you get the target profit of 4995 as mine is something over 2 millons.
what i did was
fixed cost + 60,000 / 1115 = 2 millions
Does this help?0 -
-
mickeymacca wrote: »Do you really think so visha? Even if I messed up the relevant cost question and was not clear on my EOQ explanation?
Section 1 Less then 20% error
Let us assume that your waffling is incorrect and you have lost the plot.
Maybe a small error on 4- Apportionment - pilot and crew wages.
Section 2 less then 20% errors.
Your are not sure about relevant and irrelevant costs – but you have done well
Target profit – your principle is correct but your figures may be incorrect. A minor mistake.
I am more then confident that you have passed ECR.
If you are attempting FRA tomorrow, Good luck!, though I am sure you won't need any luck from the way you have prepared for ECR.0 -
grrrr
im new to this am on tonight to see what was said about the ecr i know one thing i have failed and i will be re sitting in june that paper was pants how do they expect us to answer things that we not even been taught.............0 -
hi i agreee totally horrrrreendous. i feel sick thinking about going back
to college, every one judges who will pass/fail. but its not about that its about arming people
with knowledge and taking pride in their skills and experience so they can get on in life. thats what it should be like any ways i feel let down. simulation next week.0 -
many of the people on my course came out saying the same thing...... only a handful say that they passed rest of us fail across the board.......... i was looking through my course companion and relative and irrelatve costs are not even in the book so where they get off puttin that question in there lol0
-
1.4 The pilot and crew's wages were already allocated if I remember correctly
I also got 4995 as the amount of miles needed for the target profit.0 -
I got something like 4971 and I though that would be about right as a profit of £7000 was with 5000 units so a profit of £6000 with 4971 units looked good to me0
-
Section 1 Less then 20% error
Let us assume that your waffling is incorrect and you have lost the plot.
Maybe a small error on 4- Apportionment - pilot and crew wages.
Section 2 less then 20% errors.
Your are not sure about relevant and irrelevant costs – but you have done well
Target profit – your principle is correct but your figures may be incorrect. A minor mistake.
I am more then confident that you have passed ECR.
If you are attempting FRA tomorrow, Good luck!, though I am sure you won't need any luck from the way you have prepared for ECR.
Thanks for the benefit of your knowledge Visha, fortunately I passed FRA in June, so its just the skills test now for me. Good luck to all!0 -
to be honest, it looks quite obviousyou may be looking at a fail. sorry..0
-
fail
To whom have you addressed your comment acky? I posted the original message - do you think it's obvious I failed? If so, what did you put that was different?0 -
-
alicemaylara wrote: »it's not very nice to put unhelpful comments that have no true fact backing them up. How do you no if this person has passed or failed? This forum, as I see it is for support not put downsto be honest, it looks quite obviousyou may be looking at a fail. sorry..
Thanks for being the bearer of good news acky!! I presume as you are studying at Technician stage you did n't sit the ECR exam.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 18.9K For AAT students
- 266 NEW! Qualifications 2022
- 147 General Qualifications 2022 discussion
- 9 AAT Level 2 Certificate in Accounting
- 42 AAT Level 3 Diploma in Accounting
- 65 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 274 VAT
- 92 Software
- 274 Tax
- 138 Bookkeeping
- 7.3K General accounting discussion
- 193 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 352 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 590 Job postings
- 17 Who can benefit from AAT?
- 36 Where can AAT take me?
- 44 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 65 AAT membership