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EnglandAccountingQuick questions

3.2 Management accounting

Quick questions on Budgeting and budgetary control: planning, control and variances - AQA A-Level Accounting

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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State two benefits of budgeting. [2 marks] For example it aids planning and provides control through comparison with actual results.
What is q2?
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A budget of 15,00015{,}000 produced actual costs of 14,00014{,}000. State the variance and whether it is favourable. [2 marks] 1,0001{,}000 favourable, because less was spent than budgeted.

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