Budget Committee – NBC Institute

MI – Nov 2015 – L1 – SB – Q2 – Budgeting

Compiles functional budgets for sales, production, and material purchases for six months.

Question

ABC Limited is engaged in the production of AiBiCi product and the following data were extracted from the Budget Committee’s Report:

i. Sales is expected to be 20,000 units each in months 1 and 2, this will increase by 10% each in months 3 and 4, and 5% each in months 5 and 6.

ii. Unit selling price is currently estimated at N250, and due to increased awareness, the price will move up to N300 in the fourth month.

iii. To produce one unit of AiBiCi, the following materials are required:

2kgs of A @ N20/kg
5kgs of B @ N5/kg
2kgs of C @ N10/kg

iv. The company keeps 10% of estimated sales as closing inventory for the month. Assume no opening inventory for month 1.

You are required to compile, in tabular form, the following functional budgets for the next 6 months:

a. Sales in quantity and value. (6 Marks)

b. Production in quantity. (6 Marks)

c. Material purchase in quantity and the total cost. (8 Marks)

(Total 20 Marks)

Answer

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Tags: Budget Committee, Budgeting, Cost Management, Financial planning, Functional Budgets, Material Purchase, Production Budget, Sales Budget
Level: Level 1

Topic: Budgeting
Series: NOV 2015

MI – May 2016 – L1 – SA – Q10 – Budgeting

Identify the function that is not typically associated with a budget committee.

Question

The functions of a Budget Committee include the following EXCEPT:

A. Establishment of budget procedures and timetable
B. Installation of production capacity for the business
C. Revision and acceptance of budgets
D. Co-ordination of business forecasts
E. Review of performance report

Answer

Find Related Questions by Tags, levels, etc.

Tags: Budget Committee, Budget Procedures, Business Forecasts, Performance Review
Level: Level 1

Topic: Budgeting
Series: MAY 2016

MI – Nov 2015 – L1 – SB – Q2 – Budgeting

Compiles functional budgets for sales, production, and material purchases for six months.

Question

ABC Limited is engaged in the production of AiBiCi product and the following data were extracted from the Budget Committee’s Report:

i. Sales is expected to be 20,000 units each in months 1 and 2, this will increase by 10% each in months 3 and 4, and 5% each in months 5 and 6.

ii. Unit selling price is currently estimated at N250, and due to increased awareness, the price will move up to N300 in the fourth month.

iii. To produce one unit of AiBiCi, the following materials are required:

2kgs of A @ N20/kg
5kgs of B @ N5/kg
2kgs of C @ N10/kg

iv. The company keeps 10% of estimated sales as closing inventory for the month. Assume no opening inventory for month 1.

You are required to compile, in tabular form, the following functional budgets for the next 6 months:

a. Sales in quantity and value. (6 Marks)

b. Production in quantity. (6 Marks)

c. Material purchase in quantity and the total cost. (8 Marks)

(Total 20 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Budget Committee, Budgeting, Cost Management, Financial planning, Functional Budgets, Material Purchase, Production Budget, Sales Budget
Level: Level 1

Topic: Budgeting
Series: NOV 2015

MI – May 2016 – L1 – SA – Q10 – Budgeting

Identify the function that is not typically associated with a budget committee.

Question

The functions of a Budget Committee include the following EXCEPT:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Budget Committee, Budget Procedures, Business Forecasts, Performance Review
Level: Level 1

Topic: Budgeting
Series: MAY 2016

Question Tag: Budget Committee

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MI – Nov 2015 – L1 – SB – Q2 – Budgeting

Compiles functional budgets for sales, production, and material purchases for six months.

MI – May 2016 – L1 – SA – Q10 – Budgeting

Identify the function that is not typically associated with a budget committee.

MI – Nov 2015 – L1 – SB – Q2 – Budgeting

Compiles functional budgets for sales, production, and material purchases for six months.

MI – May 2016 – L1 – SA – Q10 – Budgeting

Identify the function that is not typically associated with a budget committee.

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MI – Nov 2015 – L1 – SB – Q2 – Budgeting

Compiles functional budgets for sales, production, and material purchases for six months.

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MI – May 2016 – L1 – SA – Q10 – Budgeting

Identify the function that is not typically associated with a budget committee.

You're reporting an error for "MI – May 2016 – L1 – SA – Q10 – Budgeting"

MI – Nov 2015 – L1 – SB – Q2 – Budgeting

Compiles functional budgets for sales, production, and material purchases for six months.

You're reporting an error for "MI – Nov 2015 – L1 – SB – Q2 – Budgeting"

MI – May 2016 – L1 – SA – Q10 – Budgeting

Identify the function that is not typically associated with a budget committee.

You're reporting an error for "MI – May 2016 – L1 – SA – Q10 – Budgeting"

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