Budgeting Exam Questions - Doubt

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siva
siva Registered Posts: 54 Epic contributor 🐘
I had my budgeting exam on saturday i had a question in the section 1 matching the source of information,
I had Material supplies and i matched this with internet search engine as i did not have any other options matching to this. Is this correct.:mad2:

Also another question in section 2 i had the sales for next year £302400 which was assumed with 4% decrease in sales price and 5% increase in something, but now it should be just 6% decrease in sales price.

my answer was £282000 is this correct.- can anyone plase tell me.

Also There was another question where i need to prepare the operating statement but the sales price was £12 but now the price should be reduced by 5% what will be the sales price - i was so confused about this. Should that be calculated as 12-(12*5/100)=11.4 or 12/1.05 = 11.43

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  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
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    Siva
    In response to question one
    i did not have any other options matching to this. Is this correct.
    You already know you are right.
    Question two
    Also another question in section 2 i had the sales for next year £302400 which was assumed with 4% decrease in sales price and 5% increase in something, but now it should be just 6% decrease in sales price.

    my answer was £282000 is this correct.- can anyone plase tell me.
    I will have to interpret this as being:
    £302,400 assumed 4% decrease in sales price and 5% increase in sales volume, but now no increase in sales volume is expected and instead the price will be decreased by 6%.

    So if you adjust the £302,400 to the value it would be without the price decrease and volume increase you have a value of £300,000
    Then reduce it by 6% to give the figure you wrote: £282,000
    Another correct answer well done.
    the sales price was £12 but now the price should be reduced by 5%

    £12 less 5% = £11.40
    5% of £12 is £0.60

    On the basis that these were your only problems, I would think you have probably passed.
    Sandy
    sandy@sandyhood.com
    www.sandyhood.com
  • siva
    siva Registered Posts: 54 Epic contributor 🐘
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    Hi Sandy,

    Thank you very much for your reply. I feel better, but still i got the last one wrong as i used £11.43 as the sales price.

    I am confused as to why shouldn't i use this method.

    I am still worried because i dont know if i will get enough marks in written questions.

    Thank you again.

    Siva
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
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    Siva

    I think you are cleverer than your posts suggest.

    It all depends on what you want to find 5% of.
    If you had a price which had been increased by 5%, and you had to find that original price then your current price is 105% of the original price. In this situation you use the technique you described and produce the answer £11.43

    If your employer wanted to advertise that goods were now being sold without VAT I know the actual price will include VAT but this is a common advert
    Will you knock 20% off the current VAT inclusive price?

    Or will you say that you need to take off 20/120ths from the price?

    I hope this example helps
    Sandy
    sandy@sandyhood.com
    www.sandyhood.com
  • siva
    siva Registered Posts: 54 Epic contributor 🐘
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    Oh god, i was totally in tension, i forgot about this completely.

    thanks.
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