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Woodside (6/07 amended)
For part a) of this question, what is the difference between the funding shortfall and actual shortfall.
Also is the actual shortfall the same thing as actual deficit.The funding shortfall is the difference between the funds that they targeted to raise and the funds that they actually did raised.
Because this is a not-for-profit organisation, instead of using the terms ‘profit’ or ‘loss’ we use the terms ‘surplus’ or ‘deficit or shortfall’.
(Incidentally, this question was set 14 years ago and the examiner has since changed. The current examiner has said that you will not be required to produce operating statements. However it is still worth practicing basic Paper MA variances as in this question because one or two are sometimes asked. All big variance questions in Paper PM are on either mix and yield variances or on planning and operational variances.)
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