budgeting- ideal standard

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babyria
babyria Registered Posts: 27 Epic contributor 🐘
hi i sat my budgetting exam yesterday, in the written question for section 2 it wanted me to explain to a manager what an ideal standard was??? i couldnt recall learning this from the osborne budgeting book. after finishing the exam. i checked the book couldnt find ideal standard anywhere.
could someone explain???i blabbed an answer but i dont know if it was correct or not.

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  • uknitty
    uknitty Registered Posts: 591 Epic contributor 🐘
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    Budgeting and FNPF was never my strongest area, but from memory the ideal standard is the textbook standard which does not have any tolerance for variance at all.

    Typically the idea standard unlikely to be attainable under actual working conditions, as in the "real world" there is always an element of variation.

    The advantage of this standard is it allows for budgets to be drawn up using standard costs and usages. The disadvantage is that if implemented as an actual target it could lead to lack of motivation amogst staff as the target could be seen as "impossible" to reach
  • babyria
    babyria Registered Posts: 27 Epic contributor 🐘
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    that is completely different to what i wrote on my exam..... oops
  • Newts22
    Newts22 Registered Posts: 59 Epic contributor 🐘
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    Hi there
    I had this question in my BGT exam on 18th May!
    I too hadn't a clue, so wrote some stuff which should gain me a couple of marks!
    However I was cross as it wasn't covered in the Osborne text, but in the FNPF, which I am now studying!
    Good luck for you results though!
  • welshwizard
    welshwizard Registered Posts: 465 Dedicated contributor 🦉
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    A word of warning to anyone studying this unit - there is significant overlap between Budgeting and Financial Performance and common areas can often be assessed in both units so it is best to check both sets of standards/guidance just in case.
  • babyria
    babyria Registered Posts: 27 Epic contributor 🐘
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    i really hope i pass... i think i did well on the calculations, i just struggle with the written tasks....
  • Claire1705
    Claire1705 Registered Posts: 37 Epic contributor 🐘
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    I too have just sat my Budgeting exam and had the same question which I was disappointed to find that it was not covered in the tutorial for this unit. Budgeting is my first unit at level 4 so if it has been covered in other units I would still be none the wiser. I had a bit of a guess and put that it was a standard set in relation to units to be produced, material wastage, time spend on production etc that could be so unrealistic that staff may lose morale as they are not likely to reach the targets and therefore performance would be affected. Hope I may get a few marks for that but I guess ultimately the key point is as someone has described above that there is no tolerance for variance rather than some/little as I touched on!
  • Jo Clark
    Jo Clark Registered Posts: 2,525 Beyond epic contributor 🧙‍♂️
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    Hello

    A little late as you have sat the exam, however it may help those who are currently studying this module. There are three standards - basic, ideal and attainable.

    Although this does not help you, they are covered in the BPP Budgeting material.

    It may be worth you mentioning that the text you used did not cover this. Speak to your training provider/college unless you are a distance learning student.

    Good luck with your results.


    JC
    ~ An investment in knowledge always pays the best interest ~
    Benjamin Franklin
  • janwal
    janwal Registered Posts: 1,189 Beyond epic contributor 🧙‍♂️
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    I'm really surprised that the other books don't cover it, but Jo is right it is in the BPP book and we covered it along with Marginal and absorption costing and was brought to our attention in level 3.

    Will make sure I know it before the exam just in case
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
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  • Claire1705
    Claire1705 Registered Posts: 37 Epic contributor 🐘
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    Ive just come back to studying FNPF (osborne books) as couldn't afford to sit my Budgeting exam for a few weeks after I finished the unit, only to find if I'd got to the next chapter (4 standard costing - further analysis) I'd have been ok with the 'ideal standard' question my exam! It's on pages 116-119. Id at least have stood a better chance had I seen this before yesterday. Should I have done FNPF before Budgeting? Worried this question might be the difference between a pass and a fail! Other students should be warned!
  • Jo Clark
    Jo Clark Registered Posts: 2,525 Beyond epic contributor 🧙‍♂️
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    Claire1705 wrote: »
    Should I have done FNPF before Budgeting?

    Personal opinion but I think studying budgeting then financial performance is the best order. I found that financial performance built on what I had learnt in budgeting. You can however studying the modules in whatever order you prefer.
    ~ An investment in knowledge always pays the best interest ~
    Benjamin Franklin
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