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CIPS L3M2 Exam - Topic 1 Question 49 Discussion

The budget for procurement staff costs is 100,000 but only 90,000 has been spent in the period. This has resulted in substantial further work for procurement staff members, sometimes working into the evening or at weekends.
D) Favourable?
A) Is the variance:
B) None of the above?
C) Adverse?

CIPS L3M2 Exam - Topic 1 Question 49 Discussion

Actual exam question for CIPS's L3M2 exam
Question #: 49
Topic #: 1
[All L3M2 Questions]

The budget for procurement staff costs is 100,000 but only 90,000 has been spent in the period. This has resulted in substantial further work for procurement staff members, sometimes working into the evening or at weekends.

Show Suggested Answer Hide Answer
Suggested Answer: D

As less has been spent than budgeted, the variance is favourable.


by Wendell at May 11, 2026, 11:03 AM

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Sena
4 days ago
I think it's adverse. More work means stress.
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Cruz
9 days ago
Sounds like a classic case of mismanagement.
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Svetlana
14 days ago
Wait, how is this favorable if they're overworked?
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Thurman
19 days ago
But the extra work isn't ideal...
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Dorothy
25 days ago
Definitely a favorable variance!
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Precious
30 days ago
That's a $10,000 surplus.
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Devora
1 month ago
I disagree, it's favorable if they saved money.
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Marisha
1 month ago
Surprised they didn't spend the whole budget!
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Carline
2 months ago
I think it's adverse since they're overworked.
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Bronwyn
2 months ago
But the extra work isn't a good sign.
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Alyce
2 months ago
That's a $10,000 surplus!
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Janae
2 months ago
I feel like I should lean towards "adverse" since the staff is struggling, but I'm not completely confident about that choice.
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Stanford
2 months ago
This reminds me of a practice question where we analyzed budget variances, but I can't recall if "none of the above" could apply here.
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Florinda
2 months ago
I think if the staff is overworked, it might indicate an adverse situation, even if the budget is under spent.
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Lore
4 months ago
I remember we discussed variances in class, but I'm not sure if spending less than the budget is always favorable.
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