The question is no 326 Woodside. In part a, I need to make an operating statement between budgeted surplus and actual shortfall. But I don't think you explained operating statement for this type instead you explained for budgeted profit and actual profit.
Ask the Tutor ACCA PM
Need help with question 326 pg 93 bpp revision kit
5y ago#1It is exactly the same approach as for a normal variance operating statement - the examiner made it a charity as a way of checking peoples understanding (as opposed to simply learning 'formulas' for the variances).
Because it is a charity then instead of referring to a profit they call it a surplus, and instead of referring to a loss they call it a shortfall.
Sign in to reply to this topic.