Budgeting Kaplan Mock Exam Question

sscors Registered Posts: 72 Epic contributor 🐘

does anyone know how to answer this question please:

This year sales are £500,000. Analysis of recent years shows a growth trend of 25% per annum.
The seasonal variation has been:

Quarter 1 +£15000
Quarter 2 +£20000
Quarter 3 -£10000
Quarter 4 -£25000

Forecast the income for each quarter of next year


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

    It appears that you are looking at mock questions before you have studied the syllabus. If I am right, I would recommend that you go back to studying the standards. Then, when you have the necessary knowledge and understanding attempt some old questions. Once you are confident over the whole of the course, attempt a mock. There are not a lot of mocks around and they have a real use in the final preparatioon before an exam. If you use them to learn the subject, you will not have the benefit of the preparatory exam practice. More worryingly, you might not have a complete coverage of the standards because the mocks cannot cover every possible aspect of the syllabus.

    I will help you this time, but I hope you will use the mocks for practice and not attempt any more until you are at the stage in your understanding to get the best from them.

    If sales growth continues at 25%, then next year the sales will be 125% x £500,000 = £625,000 for the whole year.

    Quarter 1 Base value 1/4 x £625,000 = £156,250
    Add the quarter 1 seasonal variation = ..£15,000
    Forecast income for quarter one ........ £171,250
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