Discuss CIMA CIMAPRO19-P02-1 Exam Topic 5 Question 123

How does beyond budgeting NOT help to resolve the weaknesses of traditional budgeting? Select ALL that apply.

AManagers are set goals and targets to achieve rather than abiding by strict budgets and variances.

BManagers have a much larger scope of business goals that when achieved, will increase shareholder value.

CManagers are given more freedom and control over their business units under Beyond budgeting.

DManagers focus on keeping costs low in the short term to ensure maximised profits.

EManagers are given incentives to meet or undercut budgets.

FManagers are encouraged to designate responsibility to others to lessen their workload so they may concentrate on important tasks.

Suggested Answer: D, E, F

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12 comments · newest first

Nathalie 3 months ago

Right! E just incentivizes sticking to budgets, which is counterproductive.

Chandra 3 months ago

Agreed! D focuses too much on short-term gains.

Roslyn 3 months ago

I think D and E don't really help. They just keep the old mindset.

Kattie 3 months ago

B is spot on; broader goals are better for growth!

Moon 3 months ago

E just sounds like a recipe for cutting corners.

James 4 months ago

Surprised that D is even an option!

Anglea 5 months ago

I disagree with C; more freedom can lead to chaos.

Rosita 5 months ago

A) is definitely a key point.

Dustin 6 months ago

I’m not entirely confident, but I think B could be misleading because it sounds like it aligns with beyond budgeting principles rather than highlighting a weakness.

Kenda 6 months ago

I practiced a similar question, and I think E might be a correct choice since it seems to reinforce the strict budget mentality.

Levi 6 months ago

I'm a bit unsure, but I feel like option D could be a weakness because it still focuses on short-term gains, which traditional budgeting often does.

Timmy 6 months ago

I remember that beyond budgeting emphasizes flexibility, so I think options A and C might not really address traditional budgeting weaknesses.

CIMAPRO19-P02-1 Exam - Topic 5 Question 123 Discussion