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Flexed budgets for the cost of cleaning in a hotel depend on the number of beds occupied.
proportion of beds occupied (%) & cleaning costs ($): 73% – $28,241 & 85% – 28,445%
in june 76% of beds were occupied
what i did is 28241/73%= 38686*76% = 29,402
but also 28455/85% = 33,465*76% = 25,433 ….. which one is the answer then?I have asked you before, so please do tell me – why are you attempting questions for which you have no answers to check to?
It is a complete waste of time and you must buy a Revision Kit from one of the ACCA approved publishers. Not only are you then sure that they are exam-standard questions, but also they have worked answers that you can learn from.The fact that the two different %’s give different costs must mean that they are not completely variable, but that they are semi-variable.
So you need to use the high-low approach to find the variable and fixed costs. Then you can flex the variable cost and add on the fixed cost in order to get the total cost.
sir which one is better to use for the planning stage of the budget, flexed or fixed budget?
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