Practice CBA for budgeting again

jojo1979

Hi all

Has any of you done the practice CBA for budgeting? I am having difficulty in remembering where costs need to be allocated and apportioned to. Any advice?

Jo

guinea pig

Hi Jo,
Do you still have your Costs & Revenues text books from level 3 ? if so, it may be worth going back to them, to see how costs were allocated then. The questions generally seem to be based on a manufacturing business, and the main budget areas are;
PRODUCTION-raw materials, production labour, factory expenses, production overheads,
CAPITAL EXPENDITURE- assets for long term use e.g. machinery, factory extension,
SALES & MARKETING- sales salaries, advertising
DISTRIBUTION- maintenance of delivery vehicles, fuel,
FINANCE & ADMIN-stationery, admin staff
etc.
Is your exam soon? mine is this week, so I'm frantically revising too! I'm finding it difficult to practice the written questions.
Good luck,
GP

jojo1979

Hiya GP

Thank you again for replying to my question. I think if i remember what you have just said i should be ok. Have you seen task 1.1D of the practice assessment? Do you have any ideas of how to know what goes where in that. I have looked through my old level three bits but cant find anything which will help. Mine is the 26th and am really struggling to be honest. Just as i think i have something i go and forget it. Or it turns out im completely wrong. At the moment i am just concentrating on the other bits of the exam havent even looked at the written ones yet. I am dreading the written questions. When this week is yours? Do you have any examples of written answers or pointers for them?

Jox

Jo Clark

Hello jojo

Task 1.1D of practice assessment 1 or 2?

Jo Clark

Is is this question?

Task 1.1D

Select an appropriate accounting treatment for each of the following costs:
• Holiday pay for production workers
• Material wastage in the production process
• Cost of the purchasing department
• Administrative wages
• Computing services
• Production equipment maintenance
• Depreciation of production equipment
• Redecoration of the sales showroom

Options available are:
• Allocate to marketing overheads
• Allocate to administrative overheads
• Direct cost
• Charge to production in a machine hour overhead rate
• Charge to production in a labour hour overhead rate
• Activity based charge to production cost centres

jojo1979

Hi Jo

Practice assessment 1. I havent looked at the second one yet. AM hoping to get it all in my head from the first one before i look to the second one. Have you done your budgeting exam yet?x

jojo1979

yes thats the one x

guinea pig

Hi JoJo,
I've printed the answers to both the CBA's, can you do that? and then work backwards? these are the questions with the drop-downs, so you do get clues. Again, think about whether the expenses goes into the actual making of the product, or are support activities. I'm working on an practice assessment my tutor has got from the Osborne tutor zone. There is a similar question on allocating costs to budgets, and they also include a cash column, most items have to go there as well! except for depreciation. If time, have a go at the Osborne quiz questions, they give the answers too.
I've looked at all the answers for the written questions and summarised them in a spreadsheet to help me learn them; they are generally looking at a budget submisssion, variances, or an operating statement. i think the key is to identify and analyse where there are changes.
GP

Jo Clark

Hello Jo

Yes - I sat budgeting on 4 January so hopefully results will be due mid February if not before

Jo Clark

jojo1979 wrote: »

yes thats the one x

Hello Jo

As GP has just said, you need to look at each item and decide whether it is direct or indirect to production. You then need to look at the options available and see where you think the costs should be put.

If you really are not sure, go through the list and eliminate those that it clearly is not, then see what is left. The most important thing to remember with multiple choice/drop down menu answers is to always answer, even if guessing as you may achieve some marks, however if you don't answer you get nothing!

Are you ok with the rest of the questions or have you only just started to work through the practice paper?

SandyHood

This sort of question may suit a table for you to work throughAttachment not found.

This ought to be one of the easier tasks
Please try to master the course first, and then test that you understand it by attempting the practice exams.

jojo1979

Hi

I have the answers printed off for the first CBA but not the second, it wont allow me to do those. Can you tell me where i can find the Osbourne quiz questions? I only have lecturer notes. That is a good idea to do to learn them GP. I think i will do something similar when iget around to doing them. x

Jo Clark

Jo

The link for Osborne quiz questions - http://www.osbornebooks.co.uk/budgeting1

There are two tests for budgeting.

Have fun!

jojo1979

Yes i will do that, i think i just seen them and panicked thinking oh my goodness. Thinking logically about it that is the best way to do it. Yes i think i am ok with all the other questions although i have not yet looked at the written tasks am hoping to do them tomorrow. The apportionement and allocation i think is starting to make sense and sink in now i have spoke to you guys and looked at it again. Thank you x

jojo1979

Thanks Jo will give these a try also. Thank you all for your help, i think i am finally getting it all.xx

Jo Clark

We are all here to help each other Jo - I think I'd be lost at times without the forum!