A-LevelAccountingBudgeting and Variance AnalysisFeb/Mar 2018Paper 1 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for materials costs being more than budgeted. 1 Budgeted material costs are incorrect. 2 Production machinery is outdated and wastes materials. 3 The company should purchase better quality materials to reduce wastage.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
The correct answer is A. This question tests the candidate's understanding of budgeting and variance analysis within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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