Flexed Budget – NBC Institute

IMAC – NOV 2021 – L1 – Q2 – Budgeting

Preparation of a flexed budget for Nam & Co. and identification of rules in a budget manual.

Question

Notes:
i) The fixed cost in the semi-variable cost is GH¢10,000.
ii) The budgeted units were 10,000, but actual units for the quarter were 17,000.

Required:
Prepare a Flexed Budget for the first quarter. (15 marks)

b) In the budget preparation process, the Budget Manual is an important element. This is because it guides everyone in the budget preparation value chain.

Required:
Identify FIVE (5) rules and instructions that a Budget Manual will set out. (5 marks)

Answer

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Tags: Budget Manual Rules, Flexed Budget
Level: Level 1

Topic: Budgeting
Series: NOV 2021

IMAC – NOV 2021 – L1 – Q1 – Budgeting

CVP analysis with calculation of contribution/sales ratio, total fixed costs, and breakeven sales value. Preparation of a flexed budget and identification of budget manual rules.

Question

a) Cost-Volume-Profit (CVP) analysis is a way to find out how changes in variable and fixed costs affect a firm’s profit. Companies can use CVP to assess the impact on profit taking into consideration some assumptions.

Required:
State FIVE (5) assumptions underlying Cost-Volume-Profit Analysis. (5 marks)

b) The following data has been extracted from the operating records of Sharp Production Ltd:

Year	Costs (GH¢)	Profit (GH¢)
2019	402,000	54,000
2020	510,000	90,000

Required: i) Calculate the contribution/sales ratio for the company. (5 marks) ii) Compute the total fixed costs per annum. (5 marks) iii) Compute the sales value required to breakeven. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Breakeven Analysis, Budget Manual, Contribution/Sales Ratio, CVP Analysis, Fixed Costs, Flexed Budget
Level: Level 1

Topic: Budgeting
Series: NOV 2021

IMAC – NOV 2021 – L1 – Q2 – Budgeting

Preparation of a flexed budget for Nam & Co. and identification of rules in a budget manual.

Question

Notes:
i) The fixed cost in the semi-variable cost is GH¢10,000.
ii) The budgeted units were 10,000, but actual units for the quarter were 17,000.

Required:
Prepare a Flexed Budget for the first quarter. (15 marks)

b) In the budget preparation process, the Budget Manual is an important element. This is because it guides everyone in the budget preparation value chain.

Required:
Identify FIVE (5) rules and instructions that a Budget Manual will set out. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Budget Manual Rules, Flexed Budget
Level: Level 1

Topic: Budgeting
Series: NOV 2021

IMAC – NOV 2021 – L1 – Q1 – Budgeting

CVP analysis with calculation of contribution/sales ratio, total fixed costs, and breakeven sales value. Preparation of a flexed budget and identification of budget manual rules.

Question

Required:
State FIVE (5) assumptions underlying Cost-Volume-Profit Analysis. (5 marks)

b) The following data has been extracted from the operating records of Sharp Production Ltd:

Year	Costs (GH¢)	Profit (GH¢)
2019	402,000	54,000
2020	510,000	90,000

Required: i) Calculate the contribution/sales ratio for the company. (5 marks) ii) Compute the total fixed costs per annum. (5 marks) iii) Compute the sales value required to breakeven. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Breakeven Analysis, Budget Manual, Contribution/Sales Ratio, CVP Analysis, Fixed Costs, Flexed Budget
Level: Level 1

Topic: Budgeting
Series: NOV 2021

Question Tag: Flexed Budget

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IMAC – NOV 2021 – L1 – Q2 – Budgeting

Preparation of a flexed budget for Nam & Co. and identification of rules in a budget manual.

IMAC – NOV 2021 – L1 – Q1 – Budgeting

CVP analysis with calculation of contribution/sales ratio, total fixed costs, and breakeven sales value. Preparation of a flexed budget and identification of budget manual rules.

IMAC – NOV 2021 – L1 – Q2 – Budgeting

Preparation of a flexed budget for Nam & Co. and identification of rules in a budget manual.

IMAC – NOV 2021 – L1 – Q1 – Budgeting

CVP analysis with calculation of contribution/sales ratio, total fixed costs, and breakeven sales value. Preparation of a flexed budget and identification of budget manual rules.

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IMAC – NOV 2021 – L1 – Q2 – Budgeting

Preparation of a flexed budget for Nam & Co. and identification of rules in a budget manual.

You're reporting an error for "IMAC – NOV 2021 – L1 – Q2 – Budgeting"

IMAC – NOV 2021 – L1 – Q1 – Budgeting

CVP analysis with calculation of contribution/sales ratio, total fixed costs, and breakeven sales value. Preparation of a flexed budget and identification of budget manual rules.

You're reporting an error for "IMAC – NOV 2021 – L1 – Q1 – Budgeting"

IMAC – NOV 2021 – L1 – Q2 – Budgeting

Preparation of a flexed budget for Nam & Co. and identification of rules in a budget manual.

You're reporting an error for "IMAC – NOV 2021 – L1 – Q2 – Budgeting"

IMAC – NOV 2021 – L1 – Q1 – Budgeting

CVP analysis with calculation of contribution/sales ratio, total fixed costs, and breakeven sales value. Preparation of a flexed budget and identification of budget manual rules.

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