Financial Planning

Worked examples (6)

• 1Calculate sales revenue
• 2Fixed or variable cost?
• 3Calculate total costs
• 4Calculate profit
• 5Analyse two ways to improve profit
• 6Discuss cutting costs vs raising revenue

Model answers (6)

• ✓Model answer — WBS12 Section A style — Define (2 marks, Knowledge 2)
• ✓Model answer — WBS12 Section A style — Calculate (4 marks: Knowledge 1, Application 2, Analysis 1)
• ✓Model answer — WBS12 Section A style — Analyse two (6 marks: Knowledge 2, Application 2, Analysis 2)
• ✓Model answer — WBS12 Section B style — Discuss (8 marks, 3-Level grid; Level 3 = 6–8)
• ✓Model answer — WBS12 Section A/B style — Assess (10 marks, 4-Level grid; Level 4 = 8–10)
• ✓Model answer — WBS12 Section C style — Evaluate (20 marks, 4-Level grid; Level 4 = 16–20)

Worked examples (6)

• 1Why forecast sales?
• 2Internal or external factor?
• 3Explain a factor affecting future sales
• 4How reliable is the forecast?
• 5Analyse two factors making a forecast unreliable
• 6Discuss relying on a sales forecast

Model answers (6)

• ✓Model answer — WBS12 Section A style — Define (2 marks, Knowledge 2)
• ✓Model answer — WBS12 Section A style — Explain (4 marks: Knowledge 1, Application 2, Analysis 1)
• ✓Model answer — WBS12 Section A style — Analyse two (6 marks: Knowledge 2, Application 2, Analysis 2)
• ✓Model answer — WBS12 Section B style — Discuss (8 marks, 3-Level grid; Level 3 = 6–8)
• ✓Model answer — WBS12 Section A/B style — Assess (10 marks, 4-Level grid; Level 4 = 8–10)
• ✓Model answer — WBS12 Section C style — Evaluate (20 marks, 4-Level grid; Level 4 = 16–20)

Worked examples (6)

• 1Calculate net cash flow
• 2Calculate the closing balance
• 3Complete a cash-flow forecast
• 4Cash or profit?
• 5Analyse why a profitable firm is short of cash
• 6Discuss how to fix a cash-flow problem

Model answers (6)

• ✓Model answer — WBS12 Section A style — Define (2 marks, Knowledge 2)
• ✓Model answer — WBS12 Section A style — Calculate (4 marks: Knowledge 1, Application 2, Analysis 1)
• ✓Model answer — WBS12 Section A style — Analyse two (6 marks: Knowledge 2, Application 2, Analysis 2)
• ✓Model answer — WBS12 Section B style — Discuss (8 marks, 3-Level grid; Level 3 = 6–8)
• ✓Model answer — WBS12 Section A/B style — Assess (10 marks, 4-Level grid; Level 4 = 8–10)
• ✓Model answer — WBS12 Section C style — Evaluate (20 marks, 4-Level grid; Level 4 = 16–20)

Worked examples (6)

• 1Calculate contribution per unit
• 2Calculate break-even output
• 3Calculate the margin of safety
• 4Calculate profit using contribution
• 5Construct a break-even chart
• 6Analyse a negative margin of safety

Model answers (6)

• ✓Model answer — WBS12 Section A style — Define (2 marks, Knowledge 2)
• ✓Model answer — WBS12 Section A style — Calculate (4 marks: Knowledge 1, Application 2, Analysis 1)
• ✓Model answer — WBS12 Section B style — Analyse (6 marks: Knowledge 2, Application 2, Analysis 2)
• ✓Model answer — WBS12 Section B style — Discuss (8 marks, 3-Level grid; Level 3 = 6–8)
• ✓Model answer — WBS12 Section A/B style — Assess (10 marks, 4-Level grid; Level 4 = 8–10)
• ✓Model answer — WBS12 Section C style — Evaluate (20 marks, 4-Level grid; Level 4 = 16–20)

Worked examples (6)

• 1Calculate and classify a variance
• 2Favourable or adverse?
• 3A cost variance — don't be fooled by the sign
• 4Purpose of budgeting
• 5Analyse two drawbacks of budgeting
• 6Discuss how budgets should be set

Model answers (6)

• ✓Model answer — WBS12 Section A style — Define (2 marks, Knowledge 2)
• ✓Model answer — WBS12 Section A style — Calculate (4 marks: Knowledge 1, Application 2, Analysis 1)
• ✓Model answer — WBS12 Section A style — Analyse two (6 marks: Knowledge 2, Application 2, Analysis 2)
• ✓Model answer — WBS12 Section B style — Discuss (8 marks, 3-Level grid; Level 3 = 6–8)
• ✓Model answer — WBS12 Section A/B style — Assess (10 marks, 4-Level grid; Level 4 = 8–10)
• ✓Model answer — WBS12 Section C style — Evaluate (20 marks, 4-Level grid; Level 4 = 16–20)