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

Budgeting and budgetary control — practice question

Refer to Source B1 in the insert.
(a)[2]

State two advantages of preparing a cash budget.

(b)[4]

Prepare production budgets, in units, for July and August.

(c)[11]

Prepare cash budgets for July and August.

(d)[4]

Calculate the minimum value of credit sales that must be offered the cash discount in order to reach an ending bank balance of $\$24\,500$.

(e)[4]

Explain two further ways of improving the cash position at the end of August.

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