Budget figure

Re:Budget figure

Which unit are you doing?
Eva

Re:Budget figure

Cat12
In my answer I have used 1,000 too. I can send you a copy if you wish as it is in excel so you can track where the figures come from using the formulae.

When you produce an operating statement under budgetary control you need to compare like with like. So you flex the planning budget to the same amount sold and produced in the actual results

Interestingly at the time of the Dec 05 exam John Watts was the examiner and he would tend to produce answers where he flexed all the costs to the actual sales.

What this meant was that he produced a cost of sales figure which can be compared for a variance and can be broken down into the element of cost variances.

My answer takes the same approach.

The current examiner is Alan Cull. I think his approach is better and after a tutor master class he held I have produced a second answer to 2.1 (d) which finds a cost of production value and then takes off the closing stock to find the cost of sales.
This is more useful for management control because it lets managers see the variances for the elements of the cost of production using the real values rather than their cost of sales equivalent.

I have my copy of that on my computer at work and will be in from Tuesday. If you'd like that one let me know.

sandy.hood@chichester.ac.uk

Re:Budget figure

Please email me so I only have to reply to sender

Sandy