Budgets (Cambridge (CIE) AS Business): Exam Questions

Recruitment Process (RP)

RP is a private limited company based in country Z. RP is an employment agency that operates in a dynamic business environment. To survive in the market RP must be efficient and maintain a good reputation. RP uses social media to attract customers and relies on word-of-mouth recommendations. RP has recently won an award for its diversity and equality practices.

RP's customers provide details of the roles and number of employees required. RP quotes a price to its customer and then agrees a contract to provide its services at the price quoted.

Ray, Managing Director, has asked Adjil, Finance Director, to provide a budget breakdown of a recent customer contract. RP's staff are specialist recruiters who find the appropriate employees for each job role.

Table 1.1 RP's budget for a recent customer contract, March 2024

Adjil noted that the actual cost per employee recruited showed an adverse variance of $500.

Ray is concerned that the budget does not accurately show the costs to RP. Ray thinks this is because of inefficient practices in the recruitment process.

Recruitment Process (RP)

RP is a private limited company based in country Z. RP is an employment agency that operates in a dynamic business environment. To survive in the market RP must be efficient and maintain a good reputation. RP uses social media to attract customers and relies on word-of-mouth recommendations. RP has recently won an award for its diversity and equality practices.

RP's customers provide details of the roles and number of employees required. RP quotes a price to its customer and then agrees a contract to provide its services at the price quoted.

Ray, Managing Director, has asked Adjil, Finance Director, to provide a budget breakdown of a recent customer contract. RP's staff are specialist recruiters who find the appropriate employees for each job role.

Table 1.1 RP's budget for a recent customer contract, March 2024

Adjil noted that the actual cost per employee recruited showed an adverse variance of $500.

Ray is concerned that the budget does not accurately show the costs to RP. Ray thinks this is because of inefficient practices in the recruitment process.

Post Scent (PS)

PS is a private limited company operating in country H. It sells perfume for men and women using its own website. PS purchases the perfume in large quantities from various manufacturers and then sells it in smaller quantities to its customers. Most of the perfumes are sold in glass bottles.

PS has two main ways in which it sells perfume:

• A website where customers can purchase a range of perfumes. The perfumes are priced to be lower than high street competitors.

• A subscription service where customers pay a monthly fee for a mystery perfume to be delivered each month.

All of PS's products are delivered to customers' homes using the postal service. The packages can be left in a mailbox or in a safe place outside of the home. PS has an aim to improve the sustainability of its operations.

PS uses incremental budgeting. Table 1.1 shows the budgeted and actual cost and revenue data for 2023.

Table 1.1 Budgeted and actual cost and revenue data for 2023 ($000)

The directors of PS have decided that the business needs a Marketing Manager. The role of the Marketing Manager will be:

• to plan the recruitment and training of a new sales team

• to organise the production of digital promotions

• to advise the Board of Directors on changes to the PS product portfolio.

The directors have shortlisted five suitable applicants and plan to invite them all to an assessment centre as part of the recruitment process.

Post Scent (PS)

PS is a private limited company operating in country H. It sells perfume for men and women using its own website. PS purchases the perfume in large quantities from various manufacturers and then sells it in smaller quantities to its customers. Most of the perfumes are sold in glass bottles.

PS has two main ways in which it sells perfume:

• A website where customers can purchase a range of perfumes. The perfumes are priced to be lower than high street competitors.

• A subscription service where customers pay a monthly fee for a mystery perfume to be delivered each month.

All of PS's products are delivered to customers' homes using the postal service. The packages can be left in a mailbox or in a safe place outside of the home. PS has an aim to improve the sustainability of its operations.

PS uses incremental budgeting. Table 1.1 shows the budgeted and actual cost and revenue data for 2023.

Table 1.1 Budgeted and actual cost and revenue data for 2023 ($000)

The directors of PS have decided that the business needs a Marketing Manager. The role of the Marketing Manager will be:

• to plan the recruitment and training of a new sales team

• to organise the production of digital promotions

• to advise the Board of Directors on changes to the PS product portfolio.

The directors have shortlisted five suitable applicants and plan to invite them all to an assessment centre as part of the recruitment process.