Worldatwork Exam CECP Topic 1 Question 55 Discussion

Actual exam question for Worldatwork's CECP exam

Question #: 55
Topic #: 1

[All CECP Questions]

What best describes the primary purpose of budgeting?

ALimiting spending to a fixed percentage of organizational revenue

BMaking choices about spending based on expectations of performance

CIncreasing profitability of the business annually to maximize shareholder/owner value

DComplying with local legislation and maintaining accurate records to prepare financial reports and tax documents

Show Suggested Answer

Suggested Answer: C

by Lai at Apr 11, 2024, 07:13 AM

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Brunilda

2 months ago

B) is the way to go. Budgeting is all about making informed decisions, not just blindly limiting or maximizing numbers. It's like a recipe - you need the right ingredients in the right proportions.

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Pansy

20 days ago

B) is the way to go. Budgeting is all about making informed decisions, not just blindly limiting or maximizing numbers. It's like a recipe - you need the right ingredients in the right proportions.

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Jenifer

1 months ago

B) Making choices about spending based on expectations of performance

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Verlene

2 months ago

A) Limiting spending to a fixed percentage of organizational revenue

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Casie

2 months ago

D) Complying with legislation is important, but that's more of a byproduct of budgeting, not the primary purpose. Gotta keep the tax man happy, but first things first!

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Jesusita

2 months ago

Haha, I think C) Increasing profitability annually is the goal, but budgeting is the means, not the end. It's like trying to lose weight by just stepping on the scale every day.

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Hollis

14 days ago

D) Complying with local legislation and maintaining accurate records to prepare financial reports and tax documents

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Felicidad

19 days ago

C) Increasing profitability of the business annually to maximize shareholder/owner value

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Fausto

1 months ago

B) Making choices about spending based on expectations of performance

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Reuben

1 months ago

User 2: I agree, budgeting is all about making informed decisions to achieve financial goals.

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Eloisa

1 months ago

A) Limiting spending to a fixed percentage of organizational revenue

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Shelba

1 months ago

User 1: I think B) Making choices about spending based on expectations of performance is more accurate.

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Yvonne

2 months ago

I agree, B is the correct choice. Budgeting is all about planning and aligning spending with expected outcomes.

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Lawrence

2 months ago

B) Making choices about spending based on expectations of performance seems like the most logical answer to me. Budgeting should help us allocate resources effectively.

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