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ScotlandAccountingQuick questions

Preparing Management Accounting Information

Quick questions on Cash budgets and flexible budgets - SQA Higher Accounting

3short 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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Opening cash £3,000, receipts £18,000, payments £16,000. Calculate the closing balance. [1 mark]
What is q2?
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Give one reason a profitable business might still be short of cash. [1 mark]
What is q3?
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Variable cost is £6 per unit and the budget assumed 1,000 units, but 1,200 were made. State the flexed variable cost. [2 marks]

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