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CIMA Exam CIMAPRA17-BA2-1 Topic 2 Question 89 Discussion
Actual exam question for
CIMA's
CIMAPRA17-BA2-1 exam
Question #: 89
Topic #: 2
[All CIMAPRA17-BA2-1 Questions]
Topic #: 2
Johnson & Smith is a huge corporation with many different departments covering hundreds of activities. They had switched to this new budgeting technique as it seemed as though it would help them allocate their limited funds better.
It was successful to some extent as each manager was required to look at every cost his department accrued. They would then be responsible for coming up with new ways of performing these activities.
It became obvious that certain managers were unable to handle these paperwork intensive demands and so the company will be reverting back to a system that focuses primarily on cost drivers next year.
What budgeting technique will they be using next year?
Suggested Answer:
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