CIPS L3M2 Exam - Topic 2 Question 23 Discussion

Actual exam question for CIPS's L3M2 exam

Question #: 23
Topic #: 2

[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.

AIs the variance:

BNone of the above?

CAdverse?

DFavourable?

Show Suggested Answer

Suggested Answer: D

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

by Cheryll at Sep 13, 2024, 09:04 PM

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Royce

3 months ago

But the extra work isn't a good sign at all!

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Ulysses

3 months ago

I think it's favorable since they saved 10k.

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Huey

3 months ago

Wait, how is it favorable if they're overworked?

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Kizzy

4 months ago

Definitely sounds adverse to me.

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Sherrell

4 months ago

The budget was 100k, but only 90k spent.

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Adelle

4 months ago

I’m confused about this one. I thought favorable meant saving money, but the extra hours could mean the opposite, right?

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Vilma

4 months ago

I'm leaning towards "adverse" because the staff is overworked despite the budget being under. That seems like a negative outcome.

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Royce

4 months ago

I think I saw a similar question where spending less was considered favorable, but the extra work might complicate things.

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Martina

5 months ago

I remember discussing variances in class, but I'm not sure if this one is adverse or favorable since they spent less than budgeted.

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Meghan

5 months ago

I'm a bit confused by this one. The fact that the actual spend is less than the budget makes me think the variance is favourable, but the extra work for the staff suggests it might be adverse. I'll need to re-read the question carefully and think it through step-by-step.

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Corinne

5 months ago

This seems pretty straightforward to me. The variance is the difference between the budget and actual spend, which is 10,000. And since the question states this has resulted in extra work, the variance must be adverse, so I'll choose option C.

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Delmy

5 months ago

Okay, let's see. The budget is 100,000 and the actual spend is 90,000, so the variance is 10,000. Since the question says this has resulted in "substantial further work", I'm guessing the variance is adverse. I'll go with option C.

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Rusty

5 months ago

This looks like a straightforward variance analysis question. I'll start by calculating the variance between the budget and actual spend, then determine if it's adverse or favourable based on the information provided.

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Vicky

5 months ago

Hmm, I'm a bit unsure about this one. The question mentions "substantial further work" for the procurement staff, so I'm not sure if that means the variance is adverse or favourable. I'll need to think this through carefully.

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