CIMA Exam CIMAPRO19-P01-1 Topic 2 Question 84 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam

Question #: 84
Topic #: 2

[All CIMAPRO19-P01-1 Questions]

A flexible budget is a budget that is:

Aset prior to the control period and not subsequently changed in response to changes in activity period has expired

Bcontinuously updated by adding a further accounting period when the earliest accounting period has expired

Cchanged in response to changes in the level of activity

Dchanged in response to changes in costs

Show Suggested Answer

Suggested Answer: C

References:

by Marguerita at Apr 11, 2024, 03:17 AM

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Major

8 months ago

I think options C and D both make sense. A flexible budget should be responsive to changes in both activity levels and costs.

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Arlean

8 months ago

I believe that a flexible budget is not set prior to the control period and can be adjusted based on changes in costs as well.

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Beckie

8 months ago

I agree with Candidate 1. By adjusting the budget according to activity levels, it allows for better financial planning.

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Norah

8 months ago

I think a flexible budget is one that is changed in response to changes in the level of activity.

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Maricela

8 months ago

I'm not sure, but I think it might also be important for a budget to be changed in response to changes in costs.

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Annmarie

9 months ago

I agree with Ula, I believe it's important for a budget to be adjusted based on actual activity.

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Ula

10 months ago

I think a flexible budget is one that is changed in response to changes in the level of activity.

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Myra

10 months ago

Haha, good point Ozell! A 'not subsequently changed' budget doesn't sound very flexible at all. I'm definitely going with C or D on this one.

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Ozell

11 months ago

Hold on, I'm a little confused. Isn't a flexible budget supposed to be, you know, flexible? Option A seems a bit rigid to me.

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Darrin

11 months ago

Personally, I'm leaning towards option B. Continuously updating the budget as accounting periods expire seems like a pretty flexible approach to me.

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Graciela

9 months ago

I see your point, Lavina. However, I think option D is the most practical. Changing the budget in response to changes in costs seems more realistic to me.

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Lavina

9 months ago

I disagree, I believe option C is the best choice. Changing the budget in response to changes in activity seems more adaptable.

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Merlyn

9 months ago

I think option A makes more sense. Setting the budget before the control period and not changing it seems more stable.

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Lera

11 months ago

I agree with Carissa. A flexible budget should be able to adapt to both changes in activity and changes in costs. I think option D is the best answer here.

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Hmm, I'm not so sure about that. The way I see it, a flexible budget could also be changed in response to changes in costs, which would be option D. I'm going to have to think about this one a bit more.

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Delsie

11 months ago

I think this question is pretty straightforward. A flexible budget is one that is changed in response to changes in the level of activity, so I'm going to go with option C.

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