A-level Applied Business
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1 A-level Applied Business BS03 Financial Planning and Monitoring Report on the Examination 8610 June 2014 Version: 1.0
2 Further copies of this Report are available from aqa.org.uk Copyright 2014 AQA and its licensors. All rights reserved. AQA retains the copyright on all its publications. However, registered schools/colleges for AQA are permitted to copy material from this booklet for their own internal use, with the following important exception: AQA cannot give permission to schools/colleges to photocopy any material that is acknowledged to a third party even for internal use within the centre.
3 General Comments It is pleasing to see that students taking the BS03 examination continue to make good use of the material provided before and during the examination. Many students drew effectively on the pre-release material in answering both the questions based on the research tasks and the other questions. This resulted in most answers being set clearly in the context of Hebden Carpets plc and the markets in which it operates. The majority of students also continue to handle numerical data with confidence not just in tackling calculations but also in developing arguments in response to other questions. However, inevitably there are aspects of the performance of students which could be improved. Too many students fail to develop their arguments fully particularly in response to the questions carrying higher mark allocations. Many answers comprise a large number of points without adequate explanation. Higher quality responses focused on selecting a few particularly relevant arguments and relating them fully to the precise demands of the question. Such an approach is essential to access high marks and requires practice as a key element of preparing for this examination. In contrast, too few students make use of the numerical information that is available to them in the items or as a result of their own calculations. This can often provide the basis for powerful applied arguments, especially on the final question. Question One There were many good responses to this question. The most successful responses benefited from the students taking a minute or two to select the most appropriate arguments as part of the planning process prior to commencing writing. These high quality answers offered a single advantage and a single disadvantage to ensure that they could be analysed fully in the context of the scenario. Less successful students based arguments on the principal of limited liability despite this also being a benefit of operating as a private limited company. Some students also found it difficult to score high marks as a result of offering a number of advantages and disadvantages despite the wording of the question. Only a small minority of students appeared to lack knowledge relating to public limited companies. Some students wasted time by providing a conclusion to this question apparently believing that it required a supported judgement. This opening question has not called for an evaluative response for some time; students must respond to the precise wording of the question. Question Two (a) (b) The quality of students' responses to calculation questions is improving. Most students were able to make good progress with this calculation and it was good to see so many students showing their workings to assist examiners in awarding marks for figures which may have been unfamiliar. A common error was failing to adjust variable costs in line with increased sales and production. A small number of students apparently did not have a calculator which is essential for this paper. There were many good responses to this question by students who considered stakeholders such as shareholders who would wish the project to be monitored to protect the company's profitability. However, some students did not read the question carefully and 3 of 5
4 explained the advantages of recycling for the business rather than the benefits that could be derived from monitoring the scheme. (c) Many students handled this question competently. An encouraging proportion of students were able to write analytically on at least one side of the argument and set their responses in the context of the case. Better quality responses addressed both sides of the question and considered whether or not the company would benefit from it. Such judgements were supported. Common weaknesses included being too ambitious in the number of arguments offered or failing to provide a judgement thereby meaning that marks for evaluation could not be awarded. Question Three (a) (b) Most students were able to calculate total costs and the final figure which was a loss. The most common error was a failure to recognise that the final figure was negative because the company was forecast to incur a loss in the final quarter. It is common for students to be asked to handle negative figures on this paper and it is something that they should encounter during the delivery of this unit. Almost all students demonstrated a good understanding of budgets and were able to explain their generic benefits. Less successful students did not progress beyond this point and explain why they would be essential in the context of Hebden Carpet plc's proposed expansion. It was disappointing that, despite the wording of the question, very few used the information from the budget in Item B to support and contextualise their arguments. A further weakness was that some students believed that the budget in Item B related to cash flow whilst others did not appear to understand that a budget is a forecast rather than the actual results of a period of trading. Question Four It was good to see that almost all students drew on some of the material presented in the items and the pre-release materials to develop their answers in response to this final question. The most successful students drew heavily on the financial information to develop a small number of arguments fully to address the requirements of the question. Responses to this final question can use any of the information presented in the examination paper and the students receiving the highest marks selected the most important information and used it effectively. Less successful students did not focus on the financial information available, preferring to discuss factors such as the business's image or the impact of the decision on employment levels in the UK or Poland. Whilst these factors have some relevance, a judgement on such a major investment is likely to centre upon financial information. It was also common to read responses in which students attempted to offer a large number of arguments without developing them properly. 4 of 5
5 Mark Ranges and Award of Grades Grade boundaries and cumulative percentage grades are available on the Results Statistics page of the AQA Website. Converting Marks into UMS marks Convert raw marks into Uniform Mark Scale (UMS) marks by using the link below. UMS conversion calculator 5 of 5
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