Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIMAPRO19-P02-1 Exam - Topic 4 Question 111 Discussion

Which TWO of the following actions taken during the budgetary planning process will result in the creation of budgetary slack?
A) Overestimating costs and C) Underestimating revenues
B) Underestimating costs
D) Overestimating revenues
E) Overestimating profit

CIMAPRO19-P02-1 Exam - Topic 4 Question 111 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 111
Topic #: 4
[All CIMAPRO19-P02-1 Questions]

Which TWO of the following actions taken during the budgetary planning process will result in the creation of budgetary slack?

Show Suggested Answer Hide Answer
Suggested Answer: A, C

by Antione at Apr 29, 2025, 06:28 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P02-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Phuong
8 months ago
Underestimating revenues is definitely a way to create slack.
upvoted 0 times
...
Haydee
9 months ago
Wait, can overestimating profits really lead to slack?
upvoted 0 times
...
Layla
9 months ago
Totally agree, it's a common tactic!
upvoted 0 times
...
Belen
9 months ago
I think underestimating costs could also be a factor.
upvoted 0 times
...
Jettie
9 months ago
Overestimating costs and revenues creates slack.
upvoted 0 times
...
Madonna
10 months ago
I feel like overestimating profit is definitely a way to create slack, but I need to double-check my notes on the others.
upvoted 0 times
...
Franchesca
10 months ago
I’m a bit confused; I thought overestimating revenues might help, but now I’m not so certain.
upvoted 0 times
...
Rupert
10 months ago
I remember practicing a question like this, and I think underestimating revenues could also lead to slack.
upvoted 0 times
...
Alva
10 months ago
I think overestimating costs might create budgetary slack, but I'm not sure about the second option.
upvoted 0 times
...
Lizette
10 months ago
This is a good question to test our understanding of budgetary slack. The key is identifying the actions that would intentionally inflate the budget beyond what's needed. I'm pretty sure overestimating costs and underestimating revenues are the right answers here.
upvoted 0 times
...
Raul
11 months ago
I remember discussing budgetary slack in class, but I'm drawing a blank on the details right now. I'll have to carefully read through the answer choices and try to reason it out.
upvoted 0 times
...
Vashti
11 months ago
Okay, let me think this through. Overestimating costs and underestimating revenues would both lead to a larger budget than necessary, creating slack. I'll make sure to select those two options.
upvoted 0 times
...
Tonja
11 months ago
Hmm, I'm not entirely sure about this one. I know budgetary slack has to do with intentionally inflating costs or deflating revenues, but I'm not confident which specific actions would cause that.
upvoted 0 times
...
Louann
11 months ago
This question seems straightforward. I think overestimating costs and underestimating revenues would both create budgetary slack.
upvoted 0 times
...

Save Cancel