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ACCA F2 Budgeting part c
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Thank u sir well explained
Thank you for your comment 馃檪
Hello sir ,
I have a doubt regarding the flexed budget. Can you tell me what figures you found in the flexed budget? . Please help me to clear this doubt.
But I explain where all the figures come from in the lecture. (I assume that you have downloaded the free lecture notes and so have the question in front of you?)
thank you for another excellent lecture
Thank you for the comment 馃檪
Hi John,
Example 2 also asks to summarise in a form suitable for management – I’m guessing that this would be in the format of an Operating Statement?
Do you work through this format somewhere in the next lecture on budgeting?
Yes it would be an operating statement and this is dealt with in detail in the lectures on variances.
I look forward to those lectures then. Thank you 馃檪
Hello
I wanted to ask what is the difference between flexed budget and flexible budget? I know about fixed budget just confused between those two. If you could please clear my doubt
Its simply a budget prepared in a way that is easy to flex. For example, the variable and fixed expenses are shown separately.
Hello,
i hope u r fine. sir here is not any lecture about master budget and cash budget . plz must tell me about
Please I don’t understand where the figures under the flexed budget comes from? My CBE is on the 21st December 2015.
Hi sir.
Where can I get lectures for cash budgets in deep. It’s there in 2015-16 syllabus.
Thanx
They have always been in the syllabus, but you don’t really need more for the exam than being aware what a cash budget is (which is dealt with in the lecture) and a bit of common sense.
If you want more then look at the F5 lectures where there is a worked example, but the chance of getting much if anything in Paper F2 are small.
Dear Sir,
Firstly, thank you for all these lectures which are extremely helpful.
You lost me during the F2 video in which you did exercise on p. 83, example 1d. For the cost of material purchase, you seem to have multiplied wood and varnish by their unit price, $8 and $4 respectively. However, the question is about how much 26 300kg of wood and 14700l of varnish cost. So, surely, we should not be multiplying these quantities by the per unit costs of $8 and $4, but rather by the per kg and litre costs of wood and varnish?
Thank you in advance.
Ps. I tried to post this in ask the tutor but it would not post.
Thank you open tuition for your great assistance in lectures and course notes. Since i have the opportunity few weeks ago, i have benefit a lot of ideas that was never known to me before. Thank you once more and bravo to you all.
Wow great lecture I understood every thing that was thought . Good job Sir.
Great lecture. Was previously worried when I didn’t see the solution to the examples in chapter 15 in the course notes and the definition of the different types of budget. The lectures has addressed my concerns. Thanks
I love the lecture. Thanks to you Sir!
Only facing some problems in semi-variable costing methods. Its confusing.
Hi, Mr. Moffat. i don’t understand examples four(4) and five(5) of depreciation; sale of non-current assets and revaluation. please, i need a detailed explanation. Thanks.
I am sorry but I have no idea which examples you are asking about – depreciation has nothing to do with budgeting in Paper F2.
I suggest that you watch the F3 lectures on deprecation and if you still have problems then ask in the Ask the Tutor forum and not as a comment under a lecture on something completely different.
The actual SALES revenue is $995000 not 995
Are you sure the question only says “Find out the total expenditure and volume variances”?
(because that could mean more than one thing)
yes sir, i am sure it’s on kaplan kit Budgeting chapter page no. 62 and question no. 206.
The volume variance is the difference between the original budget profit and the flexed budget profit.
The original budget profit is 120,000. If you flex the budget for sales of 100,000 units, you get a flexed profit of (10,000) (I.e. a loss of 10,000). So the volume variance is 110,000 (adverse)
The expenditure variance is the difference between the flexed budget profit and the actual profit. The flexed profit is a loss of (10,000); the actual profit is 5,000 and so the variance is 15,000 (favourable).
(This question is a bit naughty of Kaplan. Firstly because it should really be in the variances section rather than the budget section, and secondly because ‘expenditure’ variance isn’t really the correct name.)
What is the question??
The question was in the Kaplan Kit, but it is now over a year since Imran asked and there is a new edition of the kit now.
Sir, how to work this out?
A company manufactures a single product. Budgeted production for the first three months of next year is as follows :
Month 1 :8k units
Month 2 : 9k units
Month 3 : 7k units
Each unit uses 4kg of raw material costing $5 per kg. The budgeted raw material inventory at the end of each month is to be 20% of the following months production.
What are the budgeted raw material purchases for month 2 of next year (in $’s)?
(answer is $172,000)
Opening inventory for month 2 = 20% x 9,000 = 1,800
Closing inventory for month 2 = 20% x 7,000 = 1,400
So production in month 2 = 9,000 + 1,400 – 1,800 = 8,600
So raw materials = 8,600 x 4 a 5 = $172,000
Why did you add 1,400 units (c/inventory) to the production of month 2?
We sell 9,000. We start with 1800 in inventory, so that means we only need to produce 9000 – 1800. However we would then end up with no inventory at the end, but we want to have 1400 in inventory, so we need to make an additional 1400.
Sales units are always equal to opening inventory + production – closing inventory.