BUSINESS IAL EDEXCEL UNIT 2 may 2024 exam

Did the paper on the 13th of may discuss how it went
I have a question on the budgeting question and weather the question was referring to budgets in general or zero based and historical budgeting when the question only said discuss how budgeting is useful for the business what did people think

Reply 1

isa.22

Heyy i did the paper too and i was also concerned about that question- my friend said that they didnt specify whether u should talk about historical or zero based budgeting so i think they just meant budgets in general. Other than that how was it for u guys??

Reply 2

Funnybunny72

Original post by isa.22

Hii It was good overall I think so I didn’t specifically choose a budget to talk abt I wrote advantages on that they work towards maximum target costs so they will have better control over there costs allowing them to be able to ensure they can still pay for rising fuel costs and continue to meet the demand for there boat ride trips etc.. and then I said it allows them to see where spending is necessary and allows them to question weather spending is necessary on advertising cuz it said in the case study that he doesn’t focus on that I said then they will be able to reduce the risk of overspending for disadvantages I wrote that it’s time consuming and costly to oral are budgets and they may be too budget focussed which may cause customers to be disatisfied

There was a question on overdrafts I was wondering what ppl wrote on that cuz I wrote advantages on how it’s flexible Bcz interest is only charged when it’s overdrawn and then they can raise large amounts of finance they have no interest charged in the beginning and they have no risk of the ownership being dictated which is important to them as they are a lifestyle business and then I said for disadvantages is that they are a sole trader so have unlimited liability and the bank has the right to call the money owed at anytime meaning there are restrictions to it’s use

Then there was this demand question on how raising the price would effect demand I said that off peak hours have an elastic demand so the percentage change in the quantitiy demanded would be higher than in price so they would lose sales and then decrease revenues for them I said that demand would fall as energy costs go up in the economy and I said it depends on the elasticity of demand because it may be inelastic and also consumers may think that by raising the price the off peak hours are of better quality and offers more classes and services

Does anyone know if this is correct or similar to what u guys wrote 😭