IB skill practice

Use budgets and variance analysis for control decisions

Business Management HL practice with original AU/NZ business or social-enterprise resources, HL tool application, Paper 3 action planning where relevant, and balanced evaluation.

Paper 1 Paper 2 Paper 3 Ia 5 marks Difficulty 3

Business Management HL practice: Use budgets and variance analysis for control decisions

Business Management HL stimulus: Christchurch parking access app ParkMate Community is using budgetary control before offering discounted parking access for hospital visitors. The budget is $63000, actual spending is $65800, and the variance result is adverse variance of $2800. The case says server spending is below budget but support labour is above budget. Use the budget variance diagram before choosing a control action. Select the budget focus, budget data, control action, and budget limitation. Then answer this in your own words: how would this route improve the HL or Paper 3 recommendation for this exact case? AI will analyse your reasoning, resource evidence, HL tool use, social-enterprise or stakeholder judgement, implementation quality, and expression.

Worked practice: build the response

Work through the business response: concept focus, supporting evidence, the decision, then a reasoned judgement.