Cambridge International A Level · Business (9609)
5 multiple-choice questions marked as you go, and 2 written questions with worked solutions. All on Budgets.
A manager is using incremental budgeting. Last year's maintenance budget was \(\$80,000\). This year, the manager anticipates a \(5\%\) increase due to inflation and a further \(3\%\) increase for new equipment. What would be the new budgeted figure?
A furniture manufacturer notices a favourable material price variance but an adverse material usage variance. Which situation is the most likely cause?
A company is considering moving from a top-down budgeting approach to a delegated (participative) budgeting approach. What is a potential risk associated with this change?
Which of the following best describes the main purpose of zero budgeting in a business?
Why is a flexible budget often considered more useful than a fixed budget for performance evaluation?
Discuss one benefit and one drawback for a business in using budgets to manage performance.
Write your answer out first, then check it against the worked solution.
Define what a budget is and explain two benefits a business can gain from establishing and adhering to a comprehensive budget.
Write your answer out first, then check it against the worked solution.
* The content provided by thinka is generated by AI and may not always be accurate or up-to-date. Please use it as a supplementary resource and verify with official materials.
This page can show you how a good answer looks. It cannot tell you what your answer was missing. thinka marks your written work against the real mark scheme in about 15 seconds.
Want more questions like these? Get a fresh set on this topic, marked as you go.
Practise More