Section 2

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I may be being a little blond right now, but I've had a couple to unwind, but the memo on section 2 definitely asked just to explain the difference between the first budget (ie planning) and the second (ours) control didn't it? I so want to pass this exam. This was the last one and I'm finally finished! Thank you to anyone that replies, I shall just worry worry and worry otherwise!

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Section 2

    hi su3anneM - PCR - Yes the question asked us explain the why we prepared our flexed budget and the purpose of the original budget, plus a bit on the capital budget doodah!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Section 2

    I just explained why there was a difference and what the difference meant.

    waffle, really :)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Section 2

    Thank you both so much. I'd managed to convi :D:D nce myself otherwise! I'm a born worrier!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Section 2

    I made up the stuff about the capital budget and when I checked the book I found I got it more or less correct. So phew!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Section 2

    what did you put?

    i mentioned payback.....fixed assets making them work etc etc
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Section 2

    I basically said it wouldn't show material and labour costs (differ from operating budget), how much it would cost and how much money it would generate, but a bit longer winded!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Section 2

    ah

    me too, kinda... on the same lines

    i put that an operating budget deals with the current year and that a capital budget deals with assets and return on assets.. waffled about payback. made it spread over a page :)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Section 2

    I wrote that the original budget was plannig purposes and the flexed budget was for control purposes. The capital budget is used for laying out the costs and revenue associated with capital items, whereas the operating statement is used to layout the costs and revenue of production of operations, in this case the production of Pescas.


    YES - I KNEW WE WOULD DO IT!! COME ON ENGLAND.

    GOING TO GO WATCH THE SWEDEN AND PARAGUAY MATCH.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Section 2

    Did we all remember to write comparison on a like-to-like basis! :lol:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Section 2

    Yes I did! Wohooooo
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Section 2

    I thought that a capital budget might be planned over a longer period and details capital expenditure. That it is less detailed than an Operating Budget and not influenced by low level managers and employees (eg what price the manager buys material). Can be used to ensure finance is in place for large expenditure and ensure that machinery and vehicles are replaced before they wear out.

    It must have been one of the only things I didn't read in the Osborne book! :D

    I'm surprised we didn't have to analyse any of the variances as there were a few significant ones???

    Brill paper though.

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