Please can someone expalin why

Marg22 Registered Posts: 84 Regular contributor ⭐
I am currently working on ECR I've done all the work from the Osbourne books tutorial and workbook and now I am working on BBP revision companian I am on chapter 6 costing systems question 5 page 28.

All the working outs have gone fine until I got to the adding profit to the actual figure. It seems that you take the total net figure before budgeted of £4,799.00 away from the actual figure before profit was added of £4,004.50 which is £794.50. Please can someone explain why it is done this way? I added 25% profit to £4,004.50. It does not seem to be covered in the Osbourne books. :confused1:

Any replies gratefully received.


  • sebastianforbes
    sebastianforbes Registered Posts: 172 Dedicated contributor 🦉
    the budgeted figure of £4799 would have been the 'original guesstimate' and if tendered for a quote, it would be considered legally binding.

    therefore, all variances are compared to the budgeted figure.

    one other point, the revision questions are way more advanced than anything you'll see in the real exam.

    if you get stuck, or don't understand something, just relax... work it through slowly and methodically and move on. quite often, i will find something in chapter 4 that helps to explain or reinforce chapter 3 !

    also, mistakes don't carry over... so you might just lose a few points at worst.
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