PEV Exam from hell

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Well I have to say that I am absolutely gutted that they gave us such a horrible second section in the PEV exam. It was all going so well until the dreaded revision of the P & L account.<BR><BR>I spent so much time trying to get the revised P & L spot on that i probably made it worse, and had to rush the memo at the end. I also stupidly advised to get rid of factory A because the indicators were near the same so they may as well save rent and sell some of factory A's assets.<BR><BR>Unless I scrape through from getting all the variances and performance indicators right (which I think I did, except labour capacity ratio), I'll be back re-sitting in June.<BR><BR>I have learnt one thing though.......No amount of studying can prepare you for tasks like that!!!

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV Exam from hell

    I found the paper very long - a report AND a memo is a bit too much for me :( <BR><BR>I advised to get rid of factory A, because if they do they will use Factory B more efficiently (capacity ratio) plus i got a better gross profit margin, i think 44% compared to 42%. Operating profit was worse if i deducted the closure costs, but if they are ignored the ROCE improves, so i put that figure in the memo too, saying that closure costs are just a one-off. Now that i look at it i don't feel like it's right, but it's done now.<BR><BR>And to add to my misery, my statement in part 1 didn't balance, i had those £2000 coming from i don't know where.<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV Exam from hell

    It looks like I have answered the memo pretty similarly to you (probably not as clearly though). It would be interesting to know what percentage of section 2 that task holds!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV Exam from hell

    Sounds very much like what I put for part 2 - so your not the only one! I think the profit was about the same if you did not include the closure costs as an expense, but the indicators came out better. I thought that section was awful and don't see how we were expected to be prepared for it! Hopefully a bit of common sense and being able to justify your answers based on your figures will scrape us through!<BR>Lets just hope that PCR is going to be nicer!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV Exam from hell

    hello,<BR><BR>glad i am not the only one to think the exam went bad, i knew it was all going to go wrong when my reconcoilliation didn't agree!!!! i had all adverse variances and it doesn't matter how hard i tried i couldn't find out where i was going wrong.<BR><BR>does anyone know what physical indicators we were supposed to talk about in the memo?????????<BR><BR>also section two did anyone find a fixed element in the sales and distribution costs??? i think i went off tract there as it said it was a variable cost, i also added the closure costs after gross profit :(<BR><BR>think i will be sitting the exam again in june!!!!!!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV Exam from hell

    lol Oh wicked!<BR><BR>I dont know if im right too but im soooo happy that i got the same answers as u all! Close the Factory thats what i put down and just compared the indicators.<BR><BR>Anywayz Lets see!<BR><BR>Goran
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Ouch!

    First section was easy enough, but I feel like the second section was nothing like we'd done before + there was no way of knowing what to allow for labour (I factorised Factory B's labour cost i.e. devided it by 85,000hrs & then multiplied it by 140,000 maximum hrs as this was the factory capacity. No idea if that's right?). The memos were vague in what they were after and on the whole I feel like I've just wasted 6 months of my life & quite a lot of money studying for a bloody STUPID question.<BR><BR> I really hope I've scraped through, but as I felt well prepared I don't like the idea of sweating out the next 3 months because of section 2.2 & 2.3. Seems like you lot feel the same, so i reckon the pass rate will have to be lower & we'll have a chance?<BR><BR>Hope you all do well on Thursday.<BR><BR>Good luck
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV Exam from hell

    Hi, I did the same as you Donnah my reconciliation wouldn't balance and I paniked!!! Have to say though section 2 was a complete nightmare (putting it politely) dread to think what the others are going to be like and can only think to myself what are they going to throw at me now that I have never done in class. I think my tutors are working from different books to the AAT cos we never did anything to do with a revised P&L and surely that should come into Thursdays not todays...................anyway enough of my ranting I am cheesed off and desperately need a strong drink.<BR><BR>Good luck to all who have more to sit!!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV Exam from hell

    Donnah my lovely, take a deep breath! Hopefully we all got adverse variances - they were supposed to be! As for the Sales and Distribution Costs, the general manager of Factory B said they'd increase directly in proportion with the increase in production taken over from Factory A so I think you're right, they were variable. So have faith that you've passed!<BR><BR>P.S. I didn't have a clue what to put for physical indicators so waffled on about how comparing budgeted production levels to actual production levels was a physical indicator. Just hoping I don't need those marks!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Ouch!

    although section 1 was fine but what the hell was Section 2 all about<BR><BR>I just didn't make an ounce of sense what so ever<BR><BR>I thought section 1 was good but section 2 was the most unprecise question i have ever done in my whole entire life

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