Question 1 (CLO1,3):

Critically evaluate the differences between absorption and variable costing methods. In your opinion, appraise the implications of absroption costing in business decisions.

(25 Marks)

Question 2 (CLO1,3):

The budgeting process starts with generating ideas, which might consider past performance, studying the current and future outlook of the economy, and considering resources and the affordability of the business.

Based on the above statement, critically evaluate the budgeting process in assisting businesses in preparing a good financial budget.