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

Budgeting and budgetary control — practice question

Consult Source B2 in the insert.
(a)[2]

State any two advantages of preparing budgets.

(b)[5]

Prepare the production budget for the months from April to June.

(c)[6]

Prepare the purchases budget for the months from April to June.

(d)[7]

Calculate the amount payable for purchases for each of the months from April to June.

(e)[5]

Advise whether F Limited ought to accept the order and buy 300 units from an outside supplier. Justify your answer.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: Responsibility accounting

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