Question 5: (A) As a chairman of National detergents, you have to prepare the budget for the next period. As a head of budget committee, the chairman has to organize the activities of budgetary control for preparing various budgets for the company. Do you think budgetary control is important for an organization? How? (5 Marks, Word Limit 200-500) (B) Muscat Bakery has made the following sales estimates for the month July, August and September for the year 2020. You are required to prepare sales budget by units and Amount for each of the three months for each sale area and in Total. Sales area July August September Burami 30% 35% 35% Ibra 35% 40% 25% Ibri 40% 35% 25% Muscat 45% 20% 35% The area-wise unit sales are expected as follows: Sales area Sales (Units) Burami 3,500 Ibra 3,000 Ibri 4,000 Muscat 8,000 Total 18,500 The selling price has been fixed at OMR 9 per unit in Burami. OMR 8 per unit in Ibra, OMR 11 per unit in Ibri, and OMR 10 per unit in Muscat. (5 Marks)

Price of pen can be reduced by 5% and eraser by 10% By incorporating these changes, the sales will be as follows: Product UAE India Oman Pencil (30%) (+90%) 4200) Pen (-10%) (430%)(-10% Raiser (+10%) (+20%) (10%) You are required to prepare the budget for the current year as well as budget for next year. (10 Marks) Question : (A) As a chairman of National detergents, you have to prepare the budget for the next period. Asa head of budget committee, the chairman has to organize the activities of budgetary control for preparing various budgets for the company. Do you think budgetary control is important for an organization? How? (5 Marks, Word Limit 200-500) (B) Muscat Bakery has made the following sales estimates for the month July, August and September for the year 2020. You are required to prepare sales budget by units and Amount for each of the three months for each sale area and in Total. Sales July August September area Burami 30% 35% 35% bra 35% 40% 25% Ibri 40% 35% 25% Muscat 45% 20% 35% The area-wise unit sales are expected as follows: Sales area Sales (Units) Burami 3,500 Ibra 3,000 Ibri 4.000 Muscat 8,000 Total 18.500 The selling price has been fixed at OMR 9 per unit in Burami. OMR 8 per unit in Ibra, OMR 11 per unit in Ibri, and OMR 10 per unit in Muscat. (5 Marks) Page - 4. of 5