• We need your support!

    We are currently struggling to cover the operational costs of Xtremepapers, as a result we might have to shut this website down. Please donate if we have helped you and help make a difference in other students' lives!
    Click here to Donate Now (View Announcement)

Economics, Accounting & Business: Post your doubts here!

Messages
740
Reaction score
7,250
Points
503
did you check it? Answers are A, B, B, B.

the first 3. In 4 maybe I dunno the concept, the budget of the limiting factor is prepared first?

3rd one cannot be B at all...its C!!!
And 1st A ....Im pretty sure!!
 
Messages
740
Reaction score
7,250
Points
503
Im getting D B C B :confused:
Elaine explain Q1 :p

Well it's said that his creditors allow him two months credit...that means he pays two months after the production which is also 2 months before the month of sale.
Eg: Materials bought in January, used in Feb and sold in May......2 months after production is March..so they pay in March which happens to be 2 months before May the month of sale....

Apply this concept to the question
Tell me if you don't get it....I'll provide the detailed calculation =)
 
Messages
281
Reaction score
160
Points
53
Well it's said that his creditors allow him two months credit...that means he pays two months after the production which is also 2 months before the month of sale.
Eg: Materials bought in January, used in Feb and sold in May......2 months after production is March..so they pay in March which happens to be 2 months before May the month of sale....

Apply this concept to the question
Tell me if you don't get it....I'll provide the detailed calculation =)
In august hes paying for the purchases of May. Which is used for the production of June. Which is then sold in September. The sales revenue at september is 115000. If we take 50% of it, it'd be 57500 :s
Am i makin any sense?
 
Messages
740
Reaction score
7,250
Points
503
In august hes paying for the purchases of May. Which is used for the production of June. Which is then sold in September. The sales revenue at september is 115000. If we take 50% of it, it'd be 57500 :s
Am i makin any sense?


Gosh ...two months before August is July!! because you buy in July ...two months later is August....
 
Messages
281
Reaction score
160
Points
53
yeah but thats the thing...thats how we do in Flexible Budgets...this is a Fixed Budget, it is not supposed to be flexed (a theory question also came in P4 on this issue).
Omg i thought it was written flexed xD And still my answer was right :eek:
Gosh ...two months before August is July!! because you buy in July ...two months later is August....
Now i feel dumb cos im still confused :p Ah leave it :p
 
Messages
399
Reaction score
170
Points
43
payment for august means
that the goods were bought in May
We paid supplier after 2months during August
If we purchased material that means that
sale for sept which are 115 50% of them cost for prod
57.5 is the ans **** the mark scheme !
 
Messages
740
Reaction score
7,250
Points
503
We're not buying material for junes sales :/

We buy the Material in Jan for instance...then we produce in Feb and Sell in May
Hence Jan Materials are 50% of May's sales...
Apply that with June and August! =) Got it??
 
Top