CIMA Exam CIMAPRO19-P01-1 Topic 2 Question 84 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam

Question #: 84
Topic #: 2

[All CIMAPRO19-P01-1 Questions]

A flexible budget is a budget that is:

Aset prior to the control period and not subsequently changed in response to changes in activity period has expired

Bcontinuously updated by adding a further accounting period when the earliest accounting period has expired

Cchanged in response to changes in the level of activity

Dchanged in response to changes in costs

Show Suggested Answer

Suggested Answer: C

References:

by Marguerita at Apr 11, 2024, 03:17 AM

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Myra

10 days ago

Haha, good point Ozell! A 'not subsequently changed' budget doesn't sound very flexible at all. I'm definitely going with C or D on this one.

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Ozell

12 days ago

Hold on, I'm a little confused. Isn't a flexible budget supposed to be, you know, flexible? Option A seems a bit rigid to me.

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Darrin

13 days ago

Personally, I'm leaning towards option B. Continuously updating the budget as accounting periods expire seems like a pretty flexible approach to me.

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Lera

14 days ago

I agree with Carissa. A flexible budget should be able to adapt to both changes in activity and changes in costs. I think option D is the best answer here.

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Hmm, I'm not so sure about that. The way I see it, a flexible budget could also be changed in response to changes in costs, which would be option D. I'm going to have to think about this one a bit more.

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Delsie

18 days ago

I think this question is pretty straightforward. A flexible budget is one that is changed in response to changes in the level of activity, so I'm going to go with option C.

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