Zero Based Budgeting

1. Please list out the implementing stages of ZBB (refer to pg 88)
2. Explain what is decision packages? Mutually-exclusive and Incremental decision packages. 
3. List 3 advantages of ZBB.
4. List 3 disadvantages of ZBB.
5. List 3 problems of introducing ZBB.

Question 7 (pg84)

(a) 

• Explain the budget procedures (refer to pg 66).
• In volatile environment, always forecast the possible changes in coming period and revised the budget.

(b)

• Explain what is Flexible budget.

(c) 

• Explain what is participate approach and authoritative approach 

Question 5: Clothar Plc (pg81)

(b) Discuss briefly 3 problems which may arise from such a change in level of activity.

Material:
- Loss of bulk purchase discount.

- May need to pay penalty if contract signed.

Labour:
- May be changed from VC to FC.

- May need to pay compensation if redundant.

Machine:
- Any spare capacity? How to deal with it? Can it rent out?

- Affect the FPOH absorbed per unit?

Others:
- Any impact to price setting? 

- Any impact to profit?

Question 1: R Limited (pg77)

Please practice the question 1(b) on page 77. (5 marks)

- What is Principal budget factor?

- Gives some examples

- Refer to answer in (a), what is the principal budget factor?

MA1 Answers (02-08-2015)

F5: Budgetary & Control - 22/7/2015

Budgetary & Control from Jessy Chong

F5 Class on 13, 15 & 20 July

Target costing from Jessy Chong

Life cycle costing from Jessy Chong

Learning curve from Jessy Chong

Cost volume-profit (cvp) from Jessy Chong

Activity based costing from Jessy Chong

F5 : Answer for pg39 Question 9

Performance Management - ACCA - F5