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

Budgeting and budgetary control — practice question

Abida makes a product whose demand reaches a seasonal peak in particular months.
(a(i))[5]

Prepare the production budget in units for each month from June to September.

(a(ii))[5]

Prepare the purchases budget in both kilos and dollars for each month from June to September.

(b)[5]

State two advantages and three disadvantages to Abida of continuing to let the departmental managers prepare their own budgets.

(c)[2]

State two reasons why flexible budgeting can help a business.

(d)[8]

Prepare the flexed budgeted profit statement for the year. Your statement should make the variances between the actual and flexed budgeted figures clear.

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