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- Dec 21, 2014
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Hi everyone,
I am a French Business School student but I learn Cost Accounting and Management Control according to the British standards.
Last week was my final and it was a bit of a scandal at my school: my teacher managed to misprint the final and the whole promotion worked on an unfeasible exercise for a very long time before we were told the exercise was cancelled...
The third exercise was a Master Budget, you can find it by googling "brown and jeffreys, a west midlands business" and select the google book link to "Management Accounting for Decision Makers".
This exercise is perfectly doable, I would even say it's easy. BUT. Yes, there is a "but", of course : instead of the indication "Finished inventories at the end of each month are to equal the following month’s total sales to retail outlets, and half the total of the following month’s sales to the motor manufacturer", which is perfectly clear, our teacher replaced it with: "Finished inventories at the end of each month are to equal the following month’s required minimum inventories. The company has set such rule to meet the increasing market demand. The minimum opening inventories for April are estimated at 5,450 Fuel Misers." And then I'm lost... How is this doable?!
Thank you in advance for your help.
Kind regards
I am a French Business School student but I learn Cost Accounting and Management Control according to the British standards.
Last week was my final and it was a bit of a scandal at my school: my teacher managed to misprint the final and the whole promotion worked on an unfeasible exercise for a very long time before we were told the exercise was cancelled...
The third exercise was a Master Budget, you can find it by googling "brown and jeffreys, a west midlands business" and select the google book link to "Management Accounting for Decision Makers".
This exercise is perfectly doable, I would even say it's easy. BUT. Yes, there is a "but", of course : instead of the indication "Finished inventories at the end of each month are to equal the following month’s total sales to retail outlets, and half the total of the following month’s sales to the motor manufacturer", which is perfectly clear, our teacher replaced it with: "Finished inventories at the end of each month are to equal the following month’s required minimum inventories. The company has set such rule to meet the increasing market demand. The minimum opening inventories for April are estimated at 5,450 Fuel Misers." And then I'm lost... How is this doable?!
Thank you in advance for your help.
Kind regards
