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

Budgeting and budgetary control — practice question

Consult Source B1 in the insert.
(a)[4]

State two advantages and two disadvantages of running a system of budgetary control.

(b(i))[1]

State the budget, other than the sales budget, in which credit sales value would be entered.

(b(ii))[1]

State the budget, other than the sales budget, in which total sales value would be recorded.

(c)[16]

Prepare the cash budget for each month in March, April and May 2022. Use the space on the next page to show your workings.

(d)[3]

Advise the directors whether the company should pay earlier and receive the discount. Justify your answer.

Worked solution & mark scheme

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