Budgets and Budgetary Control

Aquila Instruments forecasts monthly sales of 6,000 units. Opening finished goods are 800 and the approved closing target is 1,100. There is no work in progress, loss or bought-in finished stock. Production must supply the sales and the intended stock increase. A trainee uses sales alone as the plant target. How many units should the production budget contain?

Banyan Metals plans 4,000 acceptable components. Each needs 1.8 kg of good metal content. Normal process loss is 10% of gross material input, not 10% of good output. There is no opening or closing work in progress and no scrap recovery. Finance must gross up the consumption allowance before preparing purchases. What is budgeted gross material usage?

Citrine Furnishings budgets material consumption of 12,500 kg for completed output. Opening raw stock is 2,000 kg and desired closing raw stock 1,600 kg. No abnormal loss or supplier returns occur. Purchases cost ₹70 per kg, and no carriage or discount is additional. Consumption and purchases are separate schedules. What is the raw-material purchase value?

Dove Systems forecasts March credit sales ₹5,00,000 and April ₹6,00,000. Collections are 30% in the sale month and 70% in the next month, with no bad debts or earlier unpaid balances affecting April. A sales director counts all April invoices as April cash. The cash budget must instead track both cohorts. What customer collections should April show?

Elm Trading pays suppliers 25% in the purchase month and 75% in the following month. May purchases are ₹4,00,000 and June ₹5,20,000. There are no earlier arrears, discounts, returns or other supplier balances relevant to June. Finance rejects equating current purchases with current payments. What amount belongs in June supplier cash payments?

Fable Services opens the month with cash ₹30,000. Expected receipts are ₹2,10,000 and cash payments before financing ₹2,80,000. It must close with at least ₹25,000 and can borrow exact rupees at month-end with no interest or fee in this month. There is no opening debt to repay. What new borrowing is needed to satisfy the cash policy?

Grove Packaging has ₹1,20,000 opening short-term debt. The bank charges 1% on opening principal, paid before month-end financing. Cash before interest is ₹1,01,200; minimum closing cash ₹20,000. Any excess then repays the loan. No new borrowing is needed and there are no fees. What principal remains after month-end repayment?

Horizon Fabrics has variable factory cost ₹140 per unit and fixed monthly expense ₹2,50,000 within the relevant range. Approved output was 8,000 units; actual output is 6,500 and actual factory cost ₹11,80,000. No price or structural change is known. Finance flexes the allowance at actual activity before judging spending. What is the overall spending difference?

Indigo Assembly incurs support cost ₹1,00,000 at 2,000 machine hours and ₹1,60,000 at 5,000 hours. The periods are comparable and the relationship is linear in the stated range, with no exceptional repairs or price change. A planner divides total cost by hours and mislabels it variable cost. Under high-low separation, what support budget applies at 4,000 hours?

Jasmine Components plans 7,200 units requiring 0.5 productive labour hour each. Normal idle time is 10% of paid hours; payroll is ₹180 per paid hour. There is no overtime, bonus or separate additional idle allowance. Finance must convert productive time to paid time, rather than add 10% to productive hours. What is the wage budget for the planned output?

Kite Tools requires 4,500 paid hours next month. Each full-time employee is available for 160 paid hours, with no overtime or part-time staff. The requirement already includes normal paid idle time, so it must not be grossed up again. Personnel must recruit whole people and ensure sufficient capacity. What is the minimum full-time headcount?

Lotus Workshop has a planned 10,000 productive hours. Actual hours worked are 9,500 and standard hours for the actual completed output 9,120. Mix is unchanged and there is no separate idle time. The report uses conventional capacity, efficiency and activity ratios with planned hours as the capacity/activity denominator. What is the efficiency ratio?

Maple Engineering reports actual hours of 8,400 against budget hours of 10,000. Standard hours represented by actual output are 8,820. There are no wage-rate figures and the question asks only the conventional physical budgetary ratios. A manager incorrectly uses actual hours in both numerators. What is the activity ratio under the stated budget-hours denominator?

Nectar Plastics has monthly variable cost ₹80 per unit and base fixed cost ₹1,50,000. An extra shift supervisor costs ₹30,000 in full whenever output exceeds 5,000 units; no extra supervisor is required at exactly 5,000. No further cost step occurs up to 7,000. The new forecast is 5,500 units. What total flexible factory budget applies?

Opal Screens plans to sell 3,000 units with opening finished goods 400 and closing 600. Full manufacturing cost is ₹250 per unit for both opening stock and new production; variable selling expense is ₹20 per unit sold. There are no losses or price changes. The income statement must use goods sold, not all produced units. What is budgeted cost of goods sold before selling expense?

Pine Publishing buys a machine for ₹4,80,000, ready for use on 1 July. Useful life is four years with no residual value. Use straight-line depreciation and full months from readiness. The entire price is paid in June; no tax, interest or other asset cost arises. The finance team separates capital payments from expense. What depreciation belongs in July-September profit budgets?

Quartz Trading plans annual sales ₹48,00,000 over a 360-day year with even activity. All sales are on credit and target receivables represent 27 days of sales. There are no bad debts or price changes, and inventory and payables are handled in separate schedules. Management needs the steady-state customer-credit funding target, not a guaranteed collection date. What is target receivables?

River Foods is drafting a stock budget from annual cost of goods sold ₹18,00,000 over a 360-day year. Activity is even, costs unchanged and desired inventory equals 40 days of cost. Sales revenue is ₹30,00,000, but it is not the valuation base for inventory. No work in progress or obsolescence provision applies. What inventory value belongs in the target balance sheet?

Saffron Services offers 3,000 regular productive hours already paid at ₹200 per hour. It needs 3,200 hours. Up to 200 temporary hours cost ₹240 per hour; up to 200 overtime hours cost ₹300. Both have the same stated productivity and quality. No hiring fees or minimum shifts apply. Which wage budget meets all required work at the least total cost?

Tulip Logistics has planned 25 working days in its normal calendar, but the actual month has 23 working days. Budgeted and actual labour hours are also recorded, yet the report asks for the conventional calendar ratio separately from capacity and efficiency. No day-adjusted substitute denominator is requested. What calendar percentage should the dashboard report?

Umber Trust has ₹6,00,000 available. Mandatory compliance costs ₹1,00,000 first. Optional indivisible packages A cost ₹3,00,000 for score 70, B ₹2,00,000 for score 60, and C ₹4,00,000 for score 95. Scores are comparable planning measures; choose the feasible combination with maximum total score after compliance. No partial funding or benefit overlap is allowed. Which allocation meets that rule?

Violet Clinic budgets 8,000 appointments at variable cost ₹100 each plus fixed cost ₹4,00,000. Actual appointments are 7,000 and actual expense ₹11,30,000. Rates and fixed cost remain valid at actual volume, with no supplied line breakdown. The manager cites spending below the original total as a saving. What is the fair overall spending difference after adjusting activity?

Willow Housing performance budget targets timely inspection for at least 95% of completed properties. Actual completed properties are 400 and documented timely inspections 360. Cost is within the allowance, but no evidence of resident safety outcomes is supplied. Finance must compare the service target without confusing cost compliance with quality. How far below target is the timely-inspection percentage?

Xylem Devices invites supervisors to propose labour budgets. A tested requirement is 2,000 hours, while the proposed allowance is 2,200 with no evidence of changed conditions. The proposer says easy targets protect bonuses. Finance wants participation without unsupported budget slack and must preserve the approved comparison if later changed. Which response best fits that objective?

Yarrow Retail branches report expenses on incompatible bases: one on cash payment, one on invoices and one on completed services. Submission dates and version labels differ. Management wants comparable budget-control reports next month and has no reconciled activity data today. What should the budget manual first make explicit so comparisons become meaningful?

Zenith Distribution receives monthly budget reports three weeks after operations finish. A proposed dashboard uses current actual activity, verified spending and a forecast of the remaining period to identify likely overruns earlier. It preserves the approved original budget and records authorised revisions separately. Which feature most directly supports preventive rather than solely late feedback control?

Acorn Systems reports supplies ₹12,000 adverse and travel ₹8,000 favourable against unchanged activity allowances. Both are controllable by its branch manager. A separate head-office rent allocation is ₹25,000 adverse, outside that manager authority. All entries remain in full cost reports. What is the branch-controllable net deviation?

Birch Research initial stage costs ₹1,00,000. A second stage costs ₹2,50,000 only after a technical milestone, with supplied success probability 40%. There are no other programme costs or revenues. The board wants an expected planning view, retaining staged approval conditions and separately reserving worst-case capacity. What is expected programme cash expenditure?

Clover Tools revises demand to 5,000 units this month. Opening finished goods are 900 and next-month demand is 6,000. The approved closing minimum is 15% of next-month demand. No loss or bought-in finished stock arises and practical production capacity is 4,800 units. Finance must test the physical plan before approving sales promises. What is the initial production shortfall against that minimum-stock plan?

Dawn Electronics starts with inventory ₹2,00,000, makes credit purchases ₹6,00,000 and budgets cost of goods sold ₹5,50,000. Supplier payments are ₹5,80,000, but do not determine inventory consumption. No loss, returns, work in progress or valuation change exists. In the master balance sheet, inventory must be rolled forward from physical-cost flows. What closing inventory is implied?