Control Ratios/Variances

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jewels.p
jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
in AAT Level 4 (Level 8 in Scotland)
I have just come across Control Ratios and it states in my Osbourne Book that control ratios are an alternative way of calculating differences. How do you know in an exam whether to use the variances or the percentages? :confused:

I am finding MAC a lot more harder than DFS. There seems to be a hell of a lot more difficult things to learn. Aaaaaaagh!

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  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
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    jewels.p wrote: »
    I have just come across Control Ratios and it states in my Osbourne Book that control ratios are an alternative way of calculating differences. How do you know in an exam whether to use the variances or the percentages? :confused:

    I am finding MAC a lot more harder than DFS. There seems to be a hell of a lot more difficult things to learn. Aaaaaaagh!

    i think in an exam, they will state whether to use variances or %.
    MAC is defo harder than DFS. god i am not looking forward to my exam this Nov.
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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    Me neither! Not looking forward to BTC either. I found the PTC exam hard so goodness knows how I will get on with BTC as I hear it is the more difficult of the two. :sad:
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
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    Standard costing questions will typically ask for variances
    Your book is correct, the control ratios could be used here when reporting to management. But past MAC papers have not included them in this part of the paper.

    Performance indicators are typically ratios, so you are more likely to find the volume (activity), capacity and efficiency ratios in this part of the paper.
    Sandy
    sandy@sandyhood.com
    www.sandyhood.com
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
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    jewels.p wrote: »
    Me neither! Not looking forward to BTC either. I found the PTC exam hard so goodness knows how I will get on with BTC as I hear it is the more difficult of the two. :sad:

    be honest BTC is not that bad actually! if you want, i can email you some notes i've collected for BTC.
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
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    SandyHood wrote: »
    Standard costing questions will typically ask for variances
    Your book is correct, the control ratios could be used here when reporting to management. But past MAC papers have not included them in this part of the paper.

    Performance indicators are typically ratios, so you are more likely to find the volume (activity), capacity and efficiency ratios in this part of the paper.

    hi sandy:
    are there a easy way to remember all the variance??
    p.s are you going to do a revision course for MAC, DFS?
    thanks
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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    SandyHood wrote: »
    Standard costing questions will typically ask for variances
    Your book is correct, the control ratios could be used here when reporting to management. But past MAC papers have not included them in this part of the paper.

    Performance indicators are typically ratios, so you are more likely to find the volume (activity), capacity and efficiency ratios in this part of the paper.

    Thanks Sandy
  • oh confused one
    oh confused one Registered Posts: 128 Dedicated contributor 🦉
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    jewels.p wrote: »
    Me neither! Not looking forward to BTC either. I found the PTC exam hard so goodness knows how I will get on with BTC as I hear it is the more difficult of the two. :sad:

    Don't worry about BTC it is a little harder than PTC but I thought it had a far more logical way to it - it seemed to flow better that PTC in its format - well at least it did for me.

    and.............................. I PASSED at first attempt
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
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    meibaker wrote: »
    hi sandy:
    are there a easy way to remember all the variance??
    p.s are you going to do a revision course for MAC, DFS?
    thanks

    Meibaker
    I don't recommend mneumonics, some people do. I tend to think that understanding them works better.
    see two examples here:
    http://forums.aat.org.uk/showthread.php?t=22143

    http://forums.aat.org.uk/showthread.php?t=17789

    If you go to search and then enter keyword variances and User name SandyHood
    you ought to find quite a few

    Yes I will do a revision course for MAC, but not for DFS.
    Send me an email of where in the country you would like to attend.
    I am already booked for 5 6 7 Nov, 13 14 Nov and 20 21 Nov, so anyone else wanting days ought to book quite soon.
    Sandy
    sandy@sandyhood.com
    www.sandyhood.com
  • Marga
    Marga Registered Posts: 981 Epic contributor 🐘
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    i think what helped me to understand the variances was writting everything up by hand instead of just writing the calculations

    like if we have this many units and this many hours we need to know how many hours per unit so therefore we need to split the total of hours by the total of units ...things like that helped a lot to understand them at least for me
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
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    Marga wrote: »
    i think what helped me to understand the variances was writting everything up by hand instead of just writing the calculations

    like if we have this many units and this many hours we need to know how many hours per unit so therefore we need to split the total of hours by the total of units ...things like that helped a lot to understand them at least for me

    thanks marga, i am going to write down all variances by hand, and carries with me everything.

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