Question 2 (budgeting) for Ruby Dale

chloewain_chloewain_ Registered, AAT Student Posts: 29
So I understand that the second question of the synoptic is all about budgeting and am looking at the examiner's comments, and he said the following as a weakness in students answering the question
• Inability to assess the effectiveness of planning procedures; for example, being unable to recognise that a fixed budget is not appropriate in an organisation where activity fluctuates between different periods
Does anyone know what kind of budget we would expect Ruby Dale to use please? I can't really see much in the pre-release material, that gives anything away as to what they would use

Comments

  • ReeceDayReeceDay Registered Posts: 4
    I don't know what they will provide but I definitely think a rolling budget should be used!
    Ruby Dale is operating in the fashion industry which is very fast-moving due to the change in consumer trends and tastes. A rolling budget is more advantageous for a fast moving organisation that will have many changes in activity levels...I think this fits the bill for Ruby Dale??
  • chloewain_chloewain_ Registered, AAT Student Posts: 29
    Lovely! Thank you very much Reece! That makes sense now you have said haha, but I really couldn't think.
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