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Sir there is a past Acca exam MTQ which states that which 2 of the following sentences about the manipulation issues involved in revising budgets are true?
1)The establishment of ex-post budgets is very difficult . Managers
whose performance is reported to be poor using such a budget are
unlikely to accept them as performance measures because of the
subjectivity in setting such budgets.2)Frequent demands for budget revisions may result in bias
3)The operational variances do not give a ‘fair’ reflection of the actual results achieved in the actual conditions that existed.
4)The analysis does not help in the standard setting learning process
Sir this is not covered in OT notes, but I have seen the answer in kit and the answer is 1 and 2. And I have understood this.
Sir now what I am trying to ask is that If I will open a study text then surely there will be other advantages and disadvantages of revising budgets also mentioned in study text, but since there is not any other question in kit/Acca past exam questions regarding advantages and disadvantages of revising budgets. And other advantages and disadvantages of revising budgets are also not mentioned in OT notes, so in this case I just need to remember point 1 and 2 na? And there is no need to open and look in studytext na? I hope you are understanding what I am trying to ask.
You cannot expect the lectures to cover every different way that questions can be asked in the exam. The knowledge needed to be able to answer this question is all covered in the lectures (on behavioural aspects of budgeting). The examiner deliberately asks questions that check you are understanding what is happening as opposed to simply having learned rules, and this question is a perfect example of this.
If you really understand why 1 and 2 are the answers (and why 3 and 4 are not), then that is enough.
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