a) Calculate the variance in the scenario below and state whether it is positive or negative, favourable or adverse. Then describe two benefits of setting a cashflow forecast. Fixed costs: 4,000; Actual costs: 20,000 and Budgeted costs: 25,000. (15 marks )

b) Critically analyse the most suitable organisational structure and leadership style for a factory which mainly consists of poorly motivated and unskilled workers.(22 marks )