Accounting 9706 · AS & A Level · Budgeting and budgetary control

Budgeting and budgetary control — practice question

Section B covers Cost and Management Accounting. Refer to Source B1 in the Insert.
(a)[2]

Explain the meaning of the term 'budgetary control'.

(b)[9]

Draw up the labour budget for the year ending 31 January 2018, showing clearly the labour hours, employee numbers and annual labour cost for each department.

(c)[6]

Analyse the advantages to Hyung Min of using budgetary control to help him achieve his target profit.

(d)[4]

Discuss the likely causes of the adverse variances.

(e)[4]

Advise Hyung Min on whether he should be concerned about labour variances or not. Justify your answer.

Worked solution & mark scheme

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