Discuss CIPS L3M2 Exam Topic 1 Question 3

Thinking in accounting terms, when the cost does not match the budget figure, there could be said to be a:

ADiscrepancy

BVariety

CVariance

DError

Suggested Answer: C

Actual cost and budgeted costs may / will vary. Examples might include materials variances and labour variances.

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24 comments · newest first

Cyril 11 months ago

Variance? Really? That sounds too technical!

Belen 11 months ago

Wait, isn't it just a variety?

Bethanie 12 months ago

No way, it's an error!

Whitney 12 months ago

I thought it was a discrepancy?

Merissa 1 year ago

Definitely a variance!

Nidia 1 year ago

I feel like "error" might be too strong of a term for just a cost mismatch, but I can't shake the feeling that it could apply in some cases.

Bulah 1 year ago

I definitely recall that "variance" is commonly used in budgeting discussions, so I’m leaning towards option C.

Timothy 1 year ago

I remember a practice question where they used "discrepancy" to describe differences in costs, but that doesn't feel quite right here.

Stephane 1 year ago

I think the term we're looking for is "variance," but I'm not entirely sure if that's the right word in this context.

Tegan 1 year ago

I'm a little confused by the wording of the question. Let me think through the options carefully to make sure I select the right term that describes the difference between actual and budgeted costs.

Bo 1 year ago

I've got this one! When the actual cost doesn't match the budget, that's called a variance. It's a key concept in managerial accounting that we need to understand.

Billy 1 year ago

Hmm, I'm a bit unsure about the terminology here. I'll need to review my notes on budget analysis to make sure I understand the difference between a discrepancy, variance, and error.

Golda 1 year ago

This seems like a straightforward accounting question. I'll think about the key concepts of budgeting and cost variances to determine the best answer.

Wynell 1 year ago

Ah, I remember learning about this in my accounting class. The term we're looking for is "variance" - it describes the difference between the actual cost and the budgeted amount.

Simona 1 year ago

I'm a bit confused by this one. The options mention things like AD machine authentication and RADIUS accounting, but I'm not sure how those relate to the MAC address in the User-Name. I'll need to review my RADIUS knowledge to figure out the best approach.

Azalee 1 year ago

This question seems straightforward, but I want to make sure I understand the key differences between the answer choices before selecting one.

Valentine 2 years ago

I see your point, Lashaunda. But I still think Variance is the best answer.

Lashaunda 2 years ago

I'm not so sure, I think it could also be A) Discrepancy.

Franchesca 2 years ago

I agree with Valentine, a Variance means the actual cost deviates from the budgeted figure.

Valentine 2 years ago

I think the answer is C) Variance.

Afton 2 years ago

I see your point, Dona. But I still think Variance is the best answer.

Dona 2 years ago

I'm not so sure, I think it could also be A) Discrepancy.

Stephania 2 years ago

I agree with Afton, a Variance means the actual cost deviates from the budgeted figure.

Afton 3 years ago

I think the answer is C) Variance.

CIPS L3M2 Exam - Topic 1 Question 3 Discussion