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CIMA Exam CIMAPRA17-BA2-1 Topic 2 Question 89 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 89
Topic #: 2
[All CIMAPRA17-BA2-1 Questions]

Johnson & Smith is a huge corporation with many different departments covering hundreds of activities. They had switched to this new budgeting technique as it seemed as though it would help them allocate their limited funds better.

It was successful to some extent as each manager was required to look at every cost his department accrued. They would then be responsible for coming up with new ways of performing these activities.

It became obvious that certain managers were unable to handle these paperwork intensive demands and so the company will be reverting back to a system that focuses primarily on cost drivers next year.

What budgeting technique will they be using next year?

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Suggested Answer: C

Contribute your Thoughts:

Julian
2 months ago
Incremental Budgeting? Sounds like they're going for the 'if it ain't broke, don't fix it' approach. Although, with all those managers struggling with the paperwork, maybe they should consider a budgeting system that's a little more 'plug and play'.
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Dyan
6 days ago
B) Zero Based Budgeting
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Colton
7 days ago
I agree, maybe a more straightforward approach would be better for them.
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Franklyn
10 days ago
A) Activity Based Budgeting
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Georgene
11 days ago
Yeah, it seems like they want to simplify things next year.
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Hyun
12 days ago
C) Incremental Budgeting
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Terrilyn
15 days ago
B) Zero Based Budgeting
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Alease
16 days ago
A) Activity Based Budgeting
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Virgie
2 months ago
I bet the managers at Johnson & Smith are secretly hoping for Incremental Budgeting. It's like the comfy, old slippers of budgeting techniques - familiar and easy to slip into, even if they're a little worn out.
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Blair
1 days ago
A) Activity Based Budgeting
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Timothy
17 days ago
I agree, Incremental Budgeting seems like a safe choice.
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Teri
18 days ago
C) Incremental Budgeting
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Lilli
21 days ago
B) Zero Based Budgeting
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Odelia
1 months ago
A) Activity Based Budgeting
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Shelba
2 months ago
I'm not sure, but I think Zero Based Budgeting could also be a good option for them to consider.
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Ronna
2 months ago
Zero Based Budgeting? Sounds like a recipe for disaster. Those managers can't even handle the paperwork for the current system, let alone starting from scratch every year. Incremental Budgeting is the way to go, no doubt about it.
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Lou
1 months ago
Incremental Budgeting is definitely a more practical approach for a company like Johnson & Smith.
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Laticia
2 months ago
I agree, Zero Based Budgeting seems like a lot of work for managers who are already struggling with paperwork.
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Clare
2 months ago
I agree with Adria, Incremental Budgeting makes more sense for a large corporation like Johnson & Smith.
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Derick
2 months ago
Activity Based Budgeting? No way, that's way too complex for a large corporation like Johnson & Smith. They're definitely going with good old Incremental Budgeting - simple and straightforward, just the way they like it.
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Joaquin
26 days ago
It makes sense for a large corporation like Johnson & Smith.
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Lucina
1 months ago
Incremental Budgeting is definitely easier to manage.
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Frederic
2 months ago
Yeah, Activity Based Budgeting was too complicated for some managers.
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Lavonne
2 months ago
I heard Johnson & Smith is going back to Incremental Budgeting next year.
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Adria
2 months ago
I think they will be using Incremental Budgeting next year.
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