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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › section c
newtown school (6/13)
For part a) of this question, should the value of capital expenditure be adjusted for 6% inflation as in the case of salaries and repairs and maintenance. If not then why not
Also, how to calculate the salaries figure.
Although the initial budget inflated the capital expenditure by 6%, note 3 of the question stated what the actual expenditure is going to be.
According to note 2 of the question, the salaries will be increased by 2% on 1 December, which is 6 months through the accounting period. Therefore for half the year they will stay at the same rate as for y/e 31 May 2013m and for the other half of the year they will be 2% higher.