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    I got an adverse variance of 80900 :/

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    (Original post by needtosucceed=))
    I got 80.9 too I'm not sure how people got 150 :/

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    Yeah i got that too!


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    whatever I way I worked it out I had 154500 adverse, then I did it again and got 80900. I wrote it as 80.9 adverse though :/

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    (Original post by Jake_Babydee)
    whatever I way I worked it out I had 154500 adverse, then I did it again and got 80900. I wrote it as 80.9 adverse though :/

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    Yeah hahaa i got that too


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    haha I better do well in this exam lol this is my second time doing it! buss3 next week and then buss4.. I'm so stressed lol

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    Variance analysis

    Budgeted - Actual = variance

    Budgeted = 117700 profit

    Actual = -36800 profit

    117700 F - 36800 A = 80900 Adverse

    The profit for that year was £80900 less than the budgeted amount of 117700

    You add all the F's and subtract the A's to get the variance, the use of negative numbers is confusing!

    This is how I answered the question, please can someone tell me where I went wrong
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    (Original post by sbtrkt1)
    Variance analysis

    Budgeted - Actual = variance

    Budgeted = 117700 profit

    Actual = -36800 profit

    117700 F - 36800 A = 80900 Adverse

    The profit for that year was £80900 less than the budgeted amount of 117700

    You add all the F's and subtract the A's to get the variance, the use of negative numbers is confusing!

    This is how I answered the question, please can someone tell me where I went wrong
    Amen!
    Sounds right to me


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    (Original post by Brandon_RNS)
    Amen!
    Sounds right to me


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    Ah no it is wrong,

    If they made -£36000 profit

    and they budgeted £117000

    then £36000 would be needed to get to £0 profit

    and then a further £117000 to get to the budgeted.

    36000+117000=153000A
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    if they budgeted 117000 and achieved 36000 then the variance would be 80000 adverse because it was lower than expected?
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    (Original post by Jake_Babydee)
    if they budgeted 117000 and achieved 36000 then the variance would be 80000 adverse because it was lower than expected?
    They didn't achieve 36000 profit, they made a loss of 36000. You got a negative figure when you worked out the actual profit, but it wasn't a profit it was a loss

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    (Original post by needtosucceed=))
    They didn't achieve 36000 profit, they made a loss of 36000. You got a negative figure when you worked out the actual profit, but it wasn't a profit it was a loss

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    Yeah spot on. The mistake most people made was thinking the firm was making a profit whereas they were actually making a loss. So therefore the budgeted figure minus that loss should give you 153/154 (000s) something adverse profit variance
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    No you have done budget-actual, it is budget-- (minus, minus) actual which is a plus. So technically you're saying they have an actual of 36 or whatever it is, not -36. The difference between the actual and the budget is 154500 adverse
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    (Original post by iAhmedd)
    Yeah spot on. The mistake most people made was thinking the firm was making a profit whereas they were actually making a loss. So therefore the budgeted figure minus that loss should give you 153/154 (000s) something adverse profit variance
    I knew they made a loss but I didnt think of looking at the figures properly to see if it made sense lol. ah well hopefully done better on the other questions!
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    (Original post by Brandon_RNS)
    Yeah i got that too!


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    it was wrong though :/ i reckon we'll get 4/6
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    Guys how do everyone think about their exam? Anyone know about the grade boundaries? For me, I don't think I did good on this one. So many messed up answer I wrote. feel really bad!


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    I'm pretty sure it was 154,500
    The real profit was like -30,000 or something so they made a loss and they budget to make around 120,000 so the variance was (154,500)
    I'm pretty sure this was correct, quite tricky for a calculation question!


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    (Original post by yuvalpesh)
    I'm pretty sure it was 154,500
    The real profit was like -30,000 or something so they made a loss and they budget to make around 120,000 so the variance was (154,500)
    I'm pretty sure this was correct, quite tricky for a calculation question!


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    Yeah it got everyone, but I guess we will have to wait and see :P
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    (Original post by May-o2q)
    Guys how do everyone think about their exam? Anyone know about the grade boundaries? For me, I don't think I did good on this one. So many messed up answer I wrote. feel really bad!


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    In my opinion I reckon around the 50's for an A, the paper felt average, not the best, hence why the case study lacked detail in question 2.
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    (Original post by j0shyouare)
    Yes, and then wrote that it could decrease quality if production is rushed however..
    I also put that, as the employees would focus on the amount of products made rather than the quality of them
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    (Original post by Jake_Babydee)
    haha I better do well in this exam lol this is my second time doing it! buss3 next week and then buss4.. I'm so stressed lol

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    hey dont stress out.. it was my third time doing this exam and i also have buss4 on the 20th prepared?
 
 
 
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