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

CIPS L6M5 Exam - Topic 2 Question 22 Discussion

Actual exam question for CIPS's L6M5 exam
Question #: 22
Topic #: 2
[All L6M5 Questions]

Casper is conducting a Variance Analysis of the company's budget. What is its main purpose?

Answer Options:

Show Suggested Answer Hide Answer
Suggested Answer: C

A Variance Analysis (p.95) compares planned vs. actual budget and identifies inefficiencies to enhance financial performance. Option A focuses only on overspending, B on cost-cutting, and D on categorizing costs rather than improving efficiency. [P.95]


by Markus at Apr 07, 2026, 04:57 AM

Limited Time Offer

25%

Off

Get Premium L6M5 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Emelda
18 days ago
Totally agree, that's the main goal!
upvoted 0 times
...
Elroy
23 days ago
A) To identify which departments have overspent.
upvoted 0 times
...
Felix
1 month ago
Analyzing fixed vs. variable costs seems relevant, but I don't think that's the main focus of variance analysis.
upvoted 0 times
...
Andrew
1 month ago
I feel like minimizing inefficiencies is important too, but I can't recall if that's the primary goal of variance analysis.
upvoted 0 times
...
Tijuana
2 months ago
I remember a practice question that emphasized finding cost savings, so I might lean towards option B.
upvoted 0 times
...
Vincenza
2 months ago
I think the main purpose is to identify which departments have overspent, but I'm not entirely sure.
upvoted 0 times
...

Save Cancel