Budgets and Budgetary Control

Amber Machines can produce at most 5,400 finished units next month. Opening finished goods are 700 and management requires at least 900 at month-end. No subcontracting, overtime, rejects or bought-in finished stock is available. The sales team wants a promise it can actually fulfil while respecting the stock policy. What is maximum feasible sales volume?

Beacon Panels sells products P and Q. Planned production is 1,800 P and 2,200 Q. Each P uses 4 kg of resin and each Q 1.5 kg. Opening raw stock is 1,000 kg and closing target 1,300 kg. The standards already include all normal losses; there is no extra gross-up or supplier return. What resin purchase quantity should the budget specify?

Cedar Toys plans 9,000 acceptable units. Each acceptable unit contains 0.6 kg of material. Normal loss is 20% of gross input and there is no recoverable scrap. There are no opening or closing work-in-progress balances. A trainee adds 20% to good content instead of using the yield denominator. How much gross material input is actually required?

Drift Services forecasts credit sales of ₹4,00,000 in January, ₹5,00,000 in February and ₹6,00,000 in March. It collects 20% in the sale month, 50% one month later and 30% two months later. No bad debts, early discounts or other customer balances affect March. The budget must track three cohorts rather than use one invoice total. What is March cash collection?

Echo Traders buys inventory on terms requiring 40% payment in the purchase month and 60% in the next. July purchases are ₹3,50,000 and August ₹4,50,000. No balances from earlier periods remain relevant, and there are no refunds or discounts. The finance team distinguishes purchasing from supplier cash settlement. What is August cash paid to suppliers?

Fern Assembly opens with cash ₹80,000 and no short-term debt. Receipts are ₹4,00,000 and payments before financing ₹5,10,000. Minimum closing cash is ₹50,000. Borrowing occurs at month-end in multiples of ₹10,000, with no interest or fee this month. Finance must cover the deficit plus the required reserve, rounding borrowing upward only if necessary. What borrowing is needed?

Glade Systems starts the month with a ₹3,00,000 loan. Interest is 2% on opening principal, paid before any month-end repayment. Cash before interest is ₹1,86,000, and policy preserves ₹40,000 closing cash. All surplus pays down principal; no new borrowing or fee occurs. The trainee bases interest on closing debt and understates it. What closing loan principal follows the actual contract?

Harbor Plastics has support cost ₹2,20,000 at 4,000 machine hours and ₹3,40,000 at 7,000. Activity is the only reason for the difference and cost is linear in that range. No exceptional repair, price shift or extra fixed step occurred. The next budget is for 6,000 machine hours. What total follows from the high-low cost separation?

Iris Textiles budgets variable expense ₹125 per unit and fixed expense ₹1,75,000. Actual output is 7,000 and actual expense ₹10,90,000. Original output was 8,000, but the cost behaviour remains valid at actual volume. Only a total actual expense is supplied, so no detailed efficiency or price split is possible. What is the spending deviation against a flexible allowance?

Juniper Lighting pays base fixed factory expense ₹2,00,000 and variable cost ₹60 per unit. An extra quality supervisor costs ₹25,000 only when monthly output exceeds 4,500 units. There is no additional supervisor at exactly the boundary and no further step in the relevant range. Planned output is exactly 4,500. What total factory budget is correct?

Kestrel Components plans 6,400 acceptable units, with standard productive time 0.45 hour each. Normal idle time is 20% of paid hours, not productive time. All paid hours cost ₹250; there is no overtime or other wage item. Finance requires the full payroll budget after converting output time to paid availability. What wage allowance should be approved?

Lark Devices has a budget of 15,000 productive hours, actual hours 13,500 and standard hours for actual output 14,175. The report uses conventional capacity and efficiency ratios separately, with no day adjustment to budget hours. A manager wants the resource-usage ratio, not the output earned per actual hour. What is the conventional capacity ratio?

Moss Workshop presents capacity ratio 80% and efficiency ratio 110%, using consistent budgetary-control hour definitions. Actual output is represented by standard hours, and there is no independent calendar adjustment in these ratios. Finance wants to cross-check activity against the product of capacity and efficiency, not add the two percentages. What activity ratio follows?

Nova Fabrication budgets 26 normal working days but operates for 24 actual days this month. It also has separate capacity and efficiency metrics. The dashboard requires calendar ratio as actual days divided by normal days; no alternative denominator is authorised. Report to two decimal places, without interpreting the ratio as proof of individual responsibility. What calendar ratio applies?

Orchid Goods expects sales of 4,000 units, opening finished stock 600 and closing 800. Full manufacturing cost is ₹180 per unit for both old and new goods. Selling cost is ₹15 per unit sold. No abnormal loss or price change occurs. The master statement must match manufacturing costs to sold units. What budgeted manufacturing cost of goods sold applies before selling expense?

Poppy Publishing purchases equipment costing ₹7,20,000, ready for use on 1 October. Useful life is six years and residual value zero. Use straight-line depreciation and full months from readiness. The supplier is paid before October, but payment timing does not set the depreciation charge. What new equipment depreciation enters October-December profit budgets?

Reed Traders has annual credit sales ₹54,00,000 over a 360-day planning year, evenly spread. Its expected collection policy changes from 32 days to 24 days. All else stays fixed, with no bad debt or discount. The board wants the steady-state reduction in receivables funding, not a promise that the whole amount arrives tomorrow. What planning reduction follows?

Spruce Trading targets inventory ₹2,40,000, receivables ₹3,10,000 and payables ₹1,80,000, plus minimum cash ₹60,000. No other current assets or liabilities exist. The question defines operating working capital as inventory plus receivables less trade payables and then adds the cash reserve for total net current funding. What total funding target follows?

Thistle Trust has ₹8,00,000 funding. A mandatory package requires ₹2,00,000 first. Optional indivisible A costs ₹4,00,000 for score 85, B ₹2,00,000 for score 55 and C ₹5,00,000 for score 120. Scores are comparable and additive, with no overlap or partial funding. Maximise optional benefit score inside remaining funds. Which combination is best?

Vale Research pays ₹1,50,000 for a first stage. A second stage costs ₹4,00,000 only after milestone success, with stipulated probability 25%. It has no revenues, refunds or other cash items. Management needs a worst-case reserve as well as an expected planning estimate, and stage approval remains conditional. What is worst-case expenditure minus expected expenditure?

Wisteria Clinic plans 9,000 visits at variable cost ₹120 each and fixed cost ₹3,60,000. Actual visits are 8,000 and expenditure ₹13,70,000. The fixed and variable standards remain valid. No outcome data or detailed actual expense lines are supplied. Finance adjusts for volume before judging spend, rather than calling the lower static total a favourable performance. What spending difference applies?

Xenia Housing targets documented timely inspection of 92% of completed homes. Actual completed homes are 500 and timely records 440. There is no proof about resident outcomes, and finance must keep output and quality measures separate. At the actual completed volume, how many additional timely inspections would have met the stated target?

Yew Offices reports controllable supplies ₹9,000 favourable and travel ₹14,000 adverse. Centrally allocated rent is ₹18,000 adverse and outside branch authority. All entries are valid and remain in the complete cost report. No service-volume change justifies flexing the allowance. What branch-controllable net deviation should a responsibility view show?

Zinnia Assembly needs 2,500 productive hours. It already pays 2,300 regular hours at ₹180. Up to 200 temporary hours cost ₹220, while overtime costs ₹270 per hour with the same available limit and stated productivity. No hiring fee or quality difference applies. Regular wages cannot be avoided. What least-cost total wage budget meets the full requirement?

Aurora Foods forecasts month sales of 4,600 units and next-month sales 5,000. Closing-stock minimum is 20% of next-month demand. Opening finished stock is 1,300. No losses or bought-in stock occur, and production capacity 4,400 is available. Management needs the required production and spare capacity under this initial physical plan. How much capacity headroom remains?

Bracken Retail starts with receivables ₹1,80,000, budgets credit sales ₹7,00,000 and collections ₹6,50,000. No bad debts, returns, discounts or other customer adjustments arise. Sales are not all collected immediately. Finance rolls forward the master balance sheet independently from the cash schedule. What closing receivables balance is implied?

Cypress Production receives a proposed labour target with a 10% cushion solely to ensure the supervisor earns a bonus. No changed process conditions support it. Staff input remains useful, and a verified new constraint could justify an approved revision. Finance must keep honest reporting and constructive participation. Which treatment best preserves those aims?

Dahlia Offices owns a locked budget spreadsheet, but has no shared definitions, cut-off dates, approval map or reporting timetable. Branches use incompatible recognition rules. The director wants comparable control reports and believes the password itself is a budget manual. Which action directly fixes the core missing procedure rather than merely securing one file?

Eglantine Distribution sees a potential freight overrun in a current dashboard based on verified shipments and rates. Management wants to review carrier options before period-end while preserving customer commitments and service quality. The original approved budget stays visible. Which statement about preventive budget control is best supported?

Foxglove Labs presents an expected research cost below its funding ceiling, but a later stage requires a documented technical milestone and committee approval. A manager wants an unconditional order for that stage now. There are no written terms removing the milestone condition. Which interpretation respects the budget as both a planning tool and a control process?