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

Budgeting and budgetary control — practice question

Read Source A from the insert.
(a)[4]

Explain two advantages of budgeting.

(b(i))[4]

Prepare the production budget (in units) for T Limited for April, May and June.

(b(ii))[6]

Prepare the purchases budget (in kilos and dollars) for T Limited for April, May and June.

(c)[4]

Prepare a trade receivables budget for June, showing the opening and closing balances.

(d)[7]

Advise the directors which option they ought to select. Justify your answer.

Worked solution & mark scheme

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