CIMA Exam CIMAPRO19-P01-1 Topic 3 Question 106 Discussion

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

Question #: 106
Topic #: 3

[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 Jennifer at Jan 28, 2025, 03:34 PM

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Kami

3 days ago

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

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Hyun

14 days ago

This question is as flexible as a rigid budget. But seriously, I'd go with C. Flexibility is key.

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Scarlet

16 days ago

Hmm, I'm torn between C and D. I think both changes in activity level and costs should be considered for a flexible budget.

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Boris

27 days ago

I agree with Maryann. A flexible budget needs to be responsive to changes in the business environment.

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Maryann

28 days ago

Option C seems like the correct answer. A flexible budget should be able to adapt to changes in the level of activity.

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Yaeko

13 days ago

Being able to adjust the budget in response to changes in activity is crucial for effective financial planning.

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Chaya

19 days ago

Yes, that's right. It allows for better decision-making based on the current level of activity.

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Dustin

21 days ago

I agree, a flexible budget should definitely be able to adapt to changes in activity.

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