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BUSS1 May 20th 2013

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Original post by samboJ
You divided fixed costs by the variable costs (132,000 / 1.2) instead of dividing fixed costs by contribution per unit (132,000 / 2.5-1.2=1.3) which equals 101,538.4615 which rounds up to 101,539.


You're right in that 101,539 would be the answer, but the examiners will definitely be leniant and give 538 the full mark as well.
How can there be disadvantages to that?
Reply 122
Avatar for samboJ
samboJ
11
Original post by Frostyjoe
How can there be disadvantages to that?


1. Adverse variance is demotivating.
2. Only covers revenues and not costs.
3. Therefore you can't work out profit.
4. Opportunity cost of time. (Time could be better spent elsewhere making sales).
5. Business often don't follow their budgets.

etc.
Reply 123
Avatar for samboJ
samboJ
11
Original post by midnightice
You're right in that 101,539 would be the answer, but the examiners will definitely be leniant and give 538 the full mark as well.


Yeah I agree. But I'm just being as correct as I can :wink:
Original post by samboJ
No Jasmin it was that. It was 'explain the disadvantages of an accurate income budget'.

I put:

1. Only covers revenue -> can't work out profit.
2. Adverse variance can be demotivating.

etc. etc. but I applied loads.


I'm sure it was 'problems' not disadvantages..


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Original post by dannyboyrises
I hope it isn't buy those are my thoughts right now


Posted from TSR Mobile


I really hope not. I need 70-80 UMS here to ease the pressure of BUSS4; I don't want doubts! This is why I hate TSR sometimes...
Original post by samboJ
1. Adverse variance is demotivating.
2. Only covers revenues and not costs.
3. Therefore you can't work out profit.
4. Opportunity cost of time. (Time could be better spent elsewhere making sales).
5. Business often don't follow their budgets.

etc.


Hmmm well I read the question really quickly so it might be that but I don't think it was.
Original post by samboJ
Yeah I agree. But I'm just being as correct as I can :wink:


I left my answer to 2 d.p. will that get me all the marks?


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Reply 128
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jasmiine
Original post by samboJ
1. Adverse variance is demotivating.
2. Only covers revenues and not costs.
3. Therefore you can't work out profit.
4. Opportunity cost of time. (Time could be better spent elsewhere making sales).
5. Business often don't follow their budgets.

etc.


well there would be much more adverse variance if the income budget* was inaccurate! if the budget is accurate there wouldn't be any variance


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(edited 10 years ago)
It was problems he might face if producing an accurate income budget for option b.

You have to say that expected sales revenue is not certain so it is hard for him to accurately budget how much cash will be coming in

For the second point you could have said his secondary research was conducted in the USA and in 2012 and from this he believed he could set high prices to get high income but this is a problem with regards to accuracy because research is out-dated and was not conducted in the UK

It can also be said that if he uses a bank loan or not this can be a problem when producing an accurate budget because he might decide to go with Giles or he might not have much income left after covering costs OR WORDS TO THAT EFFECT. It was not asking for the disadvantages of producing/delegating income budget
Original post by samboJ
No Jasmin it was that. It was 'explain the disadvantages of an accurate income budget'.

I put:

1. Only covers revenue -> can't work out profit.
2. Adverse variance can be demotivating.

etc. etc. but I applied loads.


It was analyse the problems Akanni may face when predicting an accurate income budget


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I thought it was 'Analyse the probelms faced in setting an accurate income budget' - it makes more sense considering what was in the case study to be this Q.
Reply 132
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samboJ
11
Original post by IHateRevisionOK?
I'm sure it was 'problems' not disadvantages..


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It was problems now that you have reminded me. But either way you can swap problems with disadvantages and it all means the same thing. But yes, it DEFINITELY said of an ***accurate*** income budget.
Reply 133
Avatar for samboJ
samboJ
11
Original post by midnightice
I thought it was 'Analyse the probelms faced in setting an accurate income budget' - it makes more sense considering what was in the case study to be this Q.


It was exactly that.
Yea but I think it was problems faced with setting an accurate income budget not the problems with having an accurate budget.
For the break-even question I put down fully what it gave me on the calculator being 101,538.4615. Will I get the full marks for this?
Reply 136
Avatar for samboJ
samboJ
11
Original post by jasmiine
well there would be much more adverse variance if the income budget* was inaccurate! if the budget is accurate there wouldn't be any variance


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Good point. Hopefully they ignore that part of my answer then. :wink:
Reply 137
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samboJ
11
Original post by jjthomas99
For the break-even question I put down fully what it gave me on the calculator being 101,538.4615. Will I get the full marks for this?


Yes I'm sure you will.
Maybe if you check on aqa there might be similar break even questions? I think it'll say a range.
Reply 139
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Tarmu
Why do they use names like 'Akanni' kept having to look back to see if I had the correct spelling :s-smilie:

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