A-LevelAccountingBudgeting and budgetary control9706/12 · Feb/Mar 2018 · Q301 Mark
A company has recently introduced a system of budgetary control. Workers have given the following reasons for materials costs being more than budgeted. 1 Budgeted material costs are incorrect. 2 Production machinery is outdated and wastes materials. 3 The company should purchase better quality materials to reduce wastage. Which reasons will cause actual material costs to be different from the budgeted costs?
A1, 2 and 3
B1 and 2 only
C1 and 3 only
D2 and 3 only
✓ Correct answer
A: 1, 2 and 3
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