Practice Assessment Budgeting

smithy44

Hi

Don't know if anyone is feeling the same but sitting my first CBA in December and have tried the online practice CBA not sure if i like it or not - no where to put your workings could we loose marks????

Anyway i have a problem with a question and wonder if anyone can help???? It is Task 2.1 in the practice CBA can't work out the flexed budget figure for equipment hire the budget is stepped, increasing at every 8000 units of monthly production. The Budget volume is 63,000 at a cost of £32,000 the flexed budget volume is 68,000.

AuntieT

I did this one yesterday:

Stepped at every 8000 units suggests that it increase at every multiple of 8000. The budget volume of 63000 units will be in the 8th step. Trick was to remember that 0 - 8000 is 1st step.

At 63000 units (8th step) the budget is £32000, £32000 divided by 8 step gives you £4000 per step.

We are looking at a volume of 68000 units which is one step on, so flexed budget will be £4000 x 9 steps = £36000.

Hope that helps.

If so it's the first time I have helped!

T

AuntieT

Next question - having done that paper yesterday - I can't find any others to have a go at. Has anyone found any?

Can someone confirm what this unit was called under the old standards and I'll just try doing the past papers for that - I think it's PCR but jst want to be sure!

Thanks!

smithy44

PCR passed papers

Hi

Thanks for the help!!! i understand now ) as for other past papers they are there under Level 4 PCR also there is a practice CBA if you won't to try that. That's if you are sitting that.

AuntieT

Fantastic thank you very much! Printed some out yesterday so glad right ones will now start on them