Aat level 3 - Study guides, Revision notes & Summaries

AAT Level 3 - CSTR - Inventory3 forms that inventory can exist in: - correct answer 1. Raw material - items to be used in the manufacture of products 2. Work in progress - items that are part way through the manufacturing process 3. Finished goods - items that have been completed and are ready to sell Functions of inventory - correct answer • Acts as a buffer in times when there is an unusually high rate of consumption • Enables the business to take advantage of discounts by buying in ...

AAT Level 3 - CSTR - Inventory3 forms that inventory can exist in: - correct answer 1. Raw material - items to be used in the manufacture of products 2. Work in progress - items that are part way through the manufacturing process 3. Finished goods - items that have been completed and are ready to sell Functions of inventory - correct answer • Acts as a buffer in times when there is an unusually high rate of consumption • Enables the business to take advantage of discounts by buying in ...

AAT Level 3 - CSTR - Fixed & Flexed BudgetsReasons for budgets: (same aims as management accounting) - correct answer 1. Forecast future activity levels 2. Communicate goals and objectives 3. Plan for the use of resources - materials, labour, money 4. Control the different departments 5. Motivation by setting achievable targets Fixed budgets: - correct answer 1. Produced for a single activity level 2. Produced at the beginning of a period 3. Used to provide information as to the aims an...

AAT Level 3 - CSTR - Labour Costs Remuneration systems - correct answer 1. Annual salaries 2. Hourly rates of pay and overtime pay 3. Piecework payments 4. Bonus schemes Hourly rates and overtime payments - correct answer 1. Hourly paid workers have a standard number of hours they work per week 2. Overtime payment - total amount paid for hours worked above the normal number of hours 3. Overtime premium - the extra paid above the normal rate for those overtime hours 4. Premium may be cl...

AAT Level 3 - CSTR - Labour CostsRemuneration systems - correct answer 1. Annual salaries 2. Hourly rates of pay and overtime pay 3. Piecework payments 4. Bonus schemes Hourly rates and overtime payments - correct answer 1. Hourly paid workers have a standard number of hours they work per week 2. Overtime payment - total amount paid for hours worked above the normal number of hours 3. Overtime premium - the extra paid above the normal rate for those overtime hours 4. Premium may be clas...

AAT Level 3 - CSTR - Fixed & Flexed BudgetsReasons for budgets: (same aims as management accounting) - correct answer 1. Forecast future activity levels 2. Communicate goals and objectives 3. Plan for the use of resources - materials, labour, money 4. Control the different departments 5. Motivation by setting achievable targets Fixed budgets: - correct answer 1. Produced for a single activity level 2. Produced at the beginning of a period 3. Used to provide information as to the aims an...

AAT Level 3 - CSTR - Overheads3 categories of indirect costs - correct answer 1. Indirect materials 2. Indirect labour 3. Indirect expenses Production overheads - correct answer 1. Included in the total production cost of a product - e.g. rent, rates, insurance, light, heat, running costs Types of non-production overheads: - correct answer 1. Administrative costs 2. Selling and distribution costs 3. Finance costs 4. Legal and professional charges Allocation, apportionment and absor...

AAT Level 3 - CSTR - Overheads3 categories of indirect costs - correct answer 1. Indirect materials 2. Indirect labour 3. Indirect expenses Production overheads - correct answer 1. Included in the total production cost of a product - e.g. rent, rates, insurance, light, heat, running costs Types of non-production overheads: - correct answer 1. Administrative costs 2. Selling and distribution costs 3. Finance costs 4. Legal and professional charges Allocation, apportionment and absor...

AAT Level 3 - CSTR - Labour Costs Exam Review Questions and answers, rated A+/ Bonus schemes - -1. A compromise between a day rate and a piece work system 2. Comprised of a date rate amount based on hours worked, and a bonus based on quantity produced 3. Group bonus scheme - bonus calculated by reference to the output of the group and split between all members Direct costs - -Wages paid to production workers, overtime hours at basic rate, overtime premium due to customers specific inst...