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IMANET CMA Exam - Topic 7 Question 115 Discussion

Which of the following statements regarding budgets is false?
B) Budgets are used only as a planning function.
A) Budgets present organizational plans in a formal, logical, and integrated manner.
C) Budgets may be developed for cash flows or labor usage.
D) A budget is a plan that contains a quantitative statement of expected results.

IMANET CMA Exam - Topic 7 Question 115 Discussion

Actual exam question for IMANET's CMA exam
Question #: 115
Topic #: 7
[All CMA Questions]

Which of the following statements regarding budgets is false?

Show Suggested Answer Hide Answer
Suggested Answer: B

Budget formulation is a planning function; however, budgets are also useful control devices. Budget provide a basis for control of performance through comparisons of actual with budgeted data. They permit analysis of variations from plans and signal the need for corrective managerial action.


by Kanisha at Aug 03, 2025, 05:12 AM

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Shalon
6 months ago
I thought budgets were just for cash flow, not labor too!
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Tyra
7 months ago
A budgets present plans formally, that's true.
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Elin
7 months ago
I agree, B is the false one!
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Alesia
7 months ago
Wait, are you saying budgets are only for planning? That seems off.
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Glynda
8 months ago
Budgets are definitely more than just planning tools.
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Lizbeth
8 months ago
I’m a bit confused about option C. I thought budgets were mostly about financial aspects, but I guess they can also relate to labor usage? Not sure if that makes it false though.
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Kimi
8 months ago
I practiced a question similar to this, and I think all the other options sound correct. Budgets definitely help in presenting plans and can be quantitative.
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Felicia
8 months ago
I’m not entirely sure, but I feel like budgets can be used for various purposes, not just planning. I might lean towards option B being incorrect.
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Stevie
8 months ago
I think I remember that budgets are more than just planning tools; they also help with control and performance evaluation. So, maybe option B is the false one?
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Cheryl
9 months ago
This is a tricky one. Budgets can be used for all sorts of planning, not just cash flows and labor. I think I know which statement is false, but I'll double-check my work.
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Marci
9 months ago
Okay, I've got a strategy here. I'll start by identifying the true statements, then the one that's left must be the false one. Gotta love process of elimination!
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Dominic
9 months ago
Hmm, I'm a bit unsure about this one. The statements seem pretty similar, so I'll have to read them closely to spot the false one.
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Shawnda
9 months ago
This seems like a straightforward question about the nature of budgets. I'll carefully review each statement and think about which one is false.
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Gracia
10 months ago
D seems to be the correct answer. A budget is a quantitative plan for the future.
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Lavera
6 months ago
D sounds right, but I see why some might choose B.
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Maia
6 months ago
I agree with King. Budgets help in controlling too.
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King
7 months ago
I think B is the false one. Budgets are used for more than just planning.
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Desirae
7 months ago
C is interesting. I never thought of budgets for labor usage.
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Lili
11 months ago
I think option B is false. Budgets are used for both planning and control functions.
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Nydia
10 months ago
D) A budget is a plan that contains a quantitative statement of expected results.
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Antione
10 months ago
C) Budgets may be developed for cash lows or labor usage.
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Stanton
10 months ago
A) Budgets present organizational plans in a formal, logical, and integrated manner.
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