Flexible & Flexed Budgets MADE EASY | ACCA paper PM / F5 | Q. Corfe | PM Budgeting Help

[@user-ut2ux8qs3d]

Hello, On Q21 I got it incorrect because I assumed the costs of supervisors was already included in the labour costs - to me that wasn't made clear in the question. This happens often when I am revising for my exam, what can I do? Thanks in advance.

[@SteveWillisACCA]

Please read carefully, it says "In addition to the above costs, the management accountant estimates that for each increment of 50,000 units produced, one supervisor will need to be employed. A supervisor’s annual salary is $35,000."

[@user-ut2ux8qs3d]

Oh right 😅 thanks @@SteveWillisACCA

[@krish9663]

When I did high-low method on Q22, I tested the VC against Year 2 and Year 3 data and ended up with a different fixed cost to 225,000.. is that correct?

[@SteveWillisACCA]

Yes, high-low is just an approximation and ignores all the data except the high and the low one.

[@yazmincashmore9232]

Where did you get the Fixed Cost from? 225,000?

[@SteveWillisACCA]

Please check in the question again--they give you the fixed costs in the original budget.

[@yazmincashmore9232]

@@SteveWillisACCA Thanks missed that!, one more question how did you get the 210,000 units?

[@MaxX-ou2fw]

@@yazmincashmore9232 80% of capacity

[@yazmincashmore9232]

@@MaxX-ou2fw thanks

[@pramilamahat1146]

whats difference between flexed and flexible budget

[@SteveWillisACCA]

Flexible budget: future--we know fixed and variable costs, can budget for any activity level. Flexed--Past. Set the flexible budget to the actual activity. "We flexed the budget to last months activity"

[@atikajamilu5660]

Pleased how did you get 210000