Indicative content
AO1 Knowledge and understanding
Knowledge of a benefit of using a budget □, including:
- Can plan for the future / forecast revenue/profit/costs
- Allocate resources
- Monitor performance
- Improve decision making
No further marks can be gained without knowledge and understanding of a benefit of a budget.
AO2 Application
Explanation of a benefit of using a budget □, including:
- Can use to price work done for other businesses
- Can see variance once work completed/improve future contract pricing
1(b)(ii)
Context of a benefit of using a budget □, including:
- Use of Table 1.1
- Reference to any row / numbers required/costs
- OFR from answer to Q1(b)(i)
- Adverse variance of $ 500
- Concerns that budget is not accurate
Accept all valid responses.
Guidance in awarding marks
Knowledge & understanding & Knowledge of a benefit of using a budget & 1 mark
Explanation & Explanation of a benefit to a business of using a budget & 1 mark
Context & Context linked to a benefit to RP of using a budget & 1 mark
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