On Question 15b are you supposed to consider the statements as True or False in total isolation, or take into account if the variance was significant or not significant in 15a as part of your decision.
Statement 1: The variance for the Direct Material cost of Department A should be reported to the purchasing manager.
The AAT sample answers give this as false.
Whereas exactly the same statement to the letter is on page 114 of Kaplan's Elements Of Costing and in their answers they indicate this statement to be True on page 120 (Study Text Book 2016-17).
Either 15b is false with AAT because the variance was not significant and therefore does not need reporting to anyone;
Or if 15b is totally isolated from 15a then AAT and Kaplan give different answers to the same statement and one of them must have a publishing error.
Jonathan
Wiltshire.
Statement 1: The variance for the Direct Material cost of Department A should be reported to the purchasing manager.
The AAT sample answers give this as false.
Whereas exactly the same statement to the letter is on page 114 of Kaplan's Elements Of Costing and in their answers they indicate this statement to be True on page 120 (Study Text Book 2016-17).
Either 15b is false with AAT because the variance was not significant and therefore does not need reporting to anyone;
Or if 15b is totally isolated from 15a then AAT and Kaplan give different answers to the same statement and one of them must have a publishing error.
Jonathan
Wiltshire.