AAT - Costs and Revenues

Introduction

Studying for the AAT Costs and Revenues exam

The content of this Knowledge Bank is not designed to be a substitute for a structured system of study towards the exams but rather should help complement your chosen study system.

In particular,

• we do not guarantee full syllabus coverage,
• the content here is not necessarily pitched at the right level of difficulty for your exam - in particular, in some areas, it may go beyond what you need,
• the knowledge bank focusses on knowledge, concepts and ideas but has very few worked examples or graded exercises for you to practice,
• there are no past exam questions here to attempt
• examiner's articles and other official guidance are not repeated here.

We highly recommend that you complete a structured course of study and obtain text books and exam kits to improve your chances of exam success.

Using the Kaplan Financial Knowledge Bank

The main benefits of the way the content is presented and accessed via the Knowledge Bank are as follows:

• a quick answer to a quick question - if you have a  query then you should be able to access a trusted answer quickly and efficiently using either the search function, the top navigation bars or /and the side navigation.
• integrated knowledge - examiners often criticise students for not appreciating how different topics fit together. By following the structured links and navigation bars in the content, you can explore related concepts to integrate your knowledge.
• assumed knowledge - you can revise assumed knowledge from lower papers by searching for the relevant topics and reading around the subjects.

The AAT Costs and Revenues syllabus

A good page to start on if you are unclear where to begin would be the overview Management Accounting page and, within this, the one on Costing. .

Other useful starting points for exploration are linked to syllabus areas below.

The syllabus for Costs and Revenues is split into 5 main learning outcomes (LOs):

LO1 Understand the nature and role of costing systems within an organisation

The best page to start with here is the one on Costing. Make sure you then also explore the related pages shown on the menus at the top and / or RHS of the page, in particular the one relating to Marginal and Absorption Costing.

LO2 Record and analyse cost information

The best place to start is again with the Costing page, followed by the ones relating to Materials costs, Labour costs, Cost Behaviour, Job Costing, Batch Costing and Process Costing.

LO3 Apportion costs according to organisational requirements

The most useful page for this syllabus area is the one relating to Overheads.

LO4 Analyse deviations from budget and report these to management

Start with the page on Standard Costing before switching to the one on Variances. There are a number of pages linked to the one on variances - be aware that most of these go beyond what you need for this paper. 

LO5 Be able to use information gathered from costing systems to assist decision-making

The knowledgebank has considerable content on different aspects of decision making. The ones of most use for Costs and Revenues are Relevant Costing, CVP Analysis, Basic Investment Appraisal and Discounted Cash Flow Techniques.

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