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Budgeting Exam

Sammmy88Sammmy88 Trusted RegularRegistered Posts: 283
I need some help....

On the flexed budget question in section 2 how do you work out the equipment hire??

Level 2 - Passed 2011
Level 3 - Passed 2012
Level 4 - Passed 2014

Awaiting to start CIMA :)


  • angi13angi13 Settling In Nicely Registered Posts: 24
    Equipment hire: step cost increases at every 8,000 units.
    Budgeted units are 63,000/8,000units = 7.875 round up to 8
    Budgeted cost £32,000/8 = £4,000 every 8,000 units increase.

    Actual units 68,000/8,000 units = 8.5 round up to 9
    9 x £4,000 = £36,000 flexed cost

    Hope this would help you.

    Good luck
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