Budgeting and budgetary control: past paper questions
Real questions on budgeting and budgetary control
The newest 20 of 111 written questions. Open one to see it on the real paper.
- 9706/31 · October/November 2025 · Q3b[5]
Calculate the profit from operations for the year ended 31 August 2025. Additional information The directors are now considering taking a number of different actions to take effect in the year ending 31 August 2026.
See it on the paper → - 9706/31 · October/November 2025 · Q3c[12]
Complete the following table to explain the effect each action would have on the statement of cash flows. If an action does not affect the statement of cash flows, explain why it does not affect it. Action: Increasing selling prices, sales volume being unaffected Explanation As part of the explanation, indicate the sec...
See it on the paper → - 9706/42 · October/November 2025 · Q2a[3]
Prepare the fixed budget for August showing the budgeted profit. In August, 7500 units were produced and sold. The actual result was as follows: $ Sales (7500 units) 607 500 Direct material (33 750 kilos) 168 750 Direct labour (24 000 hours) 372 000 Fixed overhead 66 000 Profit 750 C Limited prepared a flexible budget...
See it on the paper → - 9706/42 · October/November 2025 · Q2b[2]
Explain why a business prepares a flexible budget statement.
See it on the paper → - 9706/42 · October/November 2025 · Q2c(i)[2]
fixed overhead expenditure
See it on the paper → - 9706/42 · October/November 2025 · Q2c(ii)[3]
fixed overhead volume. Additional information The directors are concerned about the adverse variances of both the total direct material cost and the total direct labour cost.
See it on the paper → - 9706/43 · October/November 2025 · Q1a[3]
Prepare the flexible budget statement for March showing the budgeted profit.
See it on the paper → - 9706/43 · October/November 2025 · Q1d[5]
Prepare a statement reconciling the flexible budget profit with the actual profit. Additional information One of the directors is of the opinion that the standard data is artificial resulting in a significant difference from the actual results. She suggests that W Limited should stop using the standard costing system.
See it on the paper → - 9706/42 · February/March 2025 · Q2a(i)[1]
a motivating influence for staff
See it on the paper → - 9706/42 · February/March 2025 · Q2a(ii)[1]
a demotivating influence for staff.
See it on the paper → - 9706/41 · October/November 2024 · Q1a[4]
Explain two advantages of preparing a budget.
See it on the paper → - 9706/42 · October/November 2024 · Q1a[4]
Explain two reasons why a business may conduct variance analysis.
See it on the paper → - 9706/42 · October/November 2024 · Q1b[2]
State how to calculate a fixed overhead capacity variance.
See it on the paper → - 9706/42 · October/November 2024 · Q1c[5]
Prepare the flexible budget statement for the month of August.
See it on the paper → - 9706/42 · October/November 2024 · Q1d[3]
Prepare a statement reconciling the flexible budget profit in (c) with the actual profit. Additional information The actual labour hour rate in August was $15.50.
See it on the paper → - 9706/43 · October/November 2024 · Q1a[2]
Define the term ‘master budget’.
See it on the paper → - 9706/43 · October/November 2024 · Q1b[14]
Prepare the cash budget for each of the months of January, February and March 2025. Workings: Additional information Mo wishes to have a cash balance of $80 000 at 31 March 2025.
See it on the paper → - 9706/43 · October/November 2024 · Q1d[7]
Advise Mo whether or not he should prepare a master budget every year. Justify your answer.
See it on the paper → - 9706/31 · May/June 2024 · Q2b[8]
Calculate the working capital cycle (in days). Round up the components to the nearest day.
See it on the paper → - 9706/31 · May/June 2024 · Q2d[5]
Explain why X plc has performed better than M plc in managing the working capital cycle.
See it on the paper →
What examiners said
A high number of candidates stated how a budget may motivate staff. Although relatively fewer, a many candidates could also state how a budget may demotivate staff.
— Examiner report, February/March 2025, 9706/42 Q2(a) (Cambridge)
A high number of candidates stated how a budget may motivate staff. Although relatively fewer, a many candidates could also state how a budget may demotivate staff.
— Examiner report, February/March 2025, 9706/42 Q2(a) (Cambridge)
Required candidates to calculate the over-absorption or under-absorption of overheads for each department. There were many correct answers (based on own figures from the earlier tasks) though some confused over-absorption with under-absorption.
— Examiner report, October/November 2023, 9706/22 Q4(c) (Cambridge)
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