Question: A.4 (Up to 1,500 words maximum in total for Question A4a and A4b. You may use fewer words if you wish to.) a. Define and

A.4 (Up to 1,500 words maximum in total for Question A4a

A.4 (Up to 1,500 words maximum in total for Question A4a and A4b. You may use fewer words if you wish to.) a. Define and discuss Operating Gearing in a business organisation and its impact on profit at different volumes of output. Provide some examples of industries or companies with high and low levels of operating gearing in your answer. [11 marks] b. 'A favourable variance indicates that a budget has been set appropriately.' Critique this statement and explain the nature of variances, and their role within budgeting. [14 marks] A.4 (Up to 1,500 words maximum in total for Question A4a and A4b. You may use fewer words if you wish to.) a. Define and discuss Operating Gearing in a business organisation and its impact on profit at different volumes of output. Provide some examples of industries or companies with high and low levels of operating gearing in your answer. [11 marks] b. 'A favourable variance indicates that a budget has been set appropriately.' Critique this statement and explain the nature of variances, and their role within budgeting. [14 marks]

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