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

Budgeting and budgetary control — practice question

Kuldeep has drawn up an annual expenditure budget using several different activity levels.
(a)[4]

Discuss two benefits of budgetary control.

(b)[13]

Prepare the flexed budget for the year for 12 000 units.

(c)[4]

Explain to Kuldeep what could have caused a difference between the flexed budget and the actual data.

(d)[4]

Assess two drawbacks to Kuldeep of preparing an annual fixed budget.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Compare actual performance with budgeted performance” …

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