CIMA Exam CIMAPRO19-P01-1 Topic 6 Question 89 Discussion

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

Question #: 89
Topic #: 6

[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 Kayleigh at May 30, 2024, 02:38 PM

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Youlanda

5 months ago

That makes sense, it allows for adjustments based on actual activity.

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Evette

5 months ago

I think it's C) changed in response to changes in the level of activity.

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Youlanda

5 months ago

What do you think a flexible budget is?

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Kallie

5 months ago

B) continuously updated by adding a further accounting period - that just sounds like good budgeting practice, not necessarily what defines a flexible budget.

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Aleisha

4 months ago

B) continuously updated by adding a further accounting period - that just sounds like good budgeting practice, not necessarily what defines a flexible budget.

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Vonda

4 months ago

C) changed in response to changes in the level of activity

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Shawnee

4 months ago

A) set prior to the control period and not subsequently changed in response to changes in activity period has expired

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Annamaria

5 months ago

I'd go with D) changed in response to changes in costs. That seems like the key defining characteristic of a flexible budget.

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Roxane

5 months ago

C) changed in response to changes in the level of activity. This makes the most sense to me as a flexible budget should adapt to changes in the business environment.

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