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April 30, 2020 at 7:42 am
dear sir , please explain what is functional budget?
John Moffat says
April 30, 2020 at 9:03 am
A budget for an individual function of the business e.g. a sales budget, a production budget, an advertising budget etc.. See the first example in our free lectures.
May 2, 2020 at 11:20 am
Thank you sir.
May 2, 2020 at 2:59 pm
You are welcome 🙂
May 13, 2018 at 2:01 pm
could you please explain why in the 4th question functional budget is the right answer? as for me the right answer is rolling budget
May 13, 2018 at 8:50 pm
The production budget is just one budget which then will lead to the materials budget, the labour budget etc.. It is `a budget for just one function of the business, so a functional budget.
A rolling budget is a budget for the whole business that is re-done every month for the following 12 months.
Did you watch the free lectures on this before attempting the test? The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well.
May 19, 2018 at 12:24 pm
Dear John, Thank you for your answer.
Yes, I watched free lectures before attempting the test. Thank you very much for them. I think language barrier is a reasons why I did not understand.
April 5, 2018 at 11:14 am
The quiz was so amazing.
April 5, 2018 at 5:18 pm
December 5, 2016 at 4:47 pm
Question 3 is little confusing for me. I thought the answer was bottom-up budgeting at the top-down means that the budgets will be imposed by the managers without the participation of the people.
December 6, 2016 at 7:14 am
But that is what the question says – they are prepared centrally (i.e. by top management) and then imposed on the managers.
March 7, 2017 at 12:39 pm
THE KEY WORD IN THIS QUESTION IS “IMPOSED” – PEOPLE ON THE TOP ARE THE ONES WHO IMPOSE THINGS – SO THE BUDGETING PROCESS IN THIS CASE STARTS FROM THERE DOWN TO THE BOTTOM
March 7, 2017 at 1:12 pm
Please do not type in capital letters 🙂
December 3, 2015 at 5:00 pm
Rolling budgets are always prepared for the following 12 month period. This answer is showing as incorrect. Aren’t rolling budgets updated at the end of each month/quarter and then rolled forward 12 months with restated figures? Is this not the same thing?
Apologies if I have mixed something up.
December 4, 2015 at 6:37 am
Although they are usually for 12 months periods, they do not have to be. For example the could be updated every month for the following 6 months.
May 9, 2017 at 2:51 pm
what if ques 1 says : rolling budgets are prepared for following 12 months. would it be correct?
May 9, 2017 at 3:21 pm
No – it wouldn’t.
As I wrote in my first reply, they do not have to be prepared for 12 months periods. They could be prepared fro 6 month periods.
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