CIMA Exam CIMAPRO19-P01-1 Topic 9 Question 104 Discussion

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

Question #: 104
Topic #: 9

[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 Chau at Dec 06, 2024, 08:48 AM

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Hyun

2 months ago

C) changed in response to changes in the level of activity. Yep, that's the one. Gotta be nimble to stay on top of those activity changes.

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Nilsa

2 months ago

A flexible budget, huh? Sounds like my monthly food budget. Always gotta leave room for an extra pizza or two!

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Rory

2 months ago

I always try to have a flexible budget so I can treat myself to something extra if I want to.

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Susana

2 months ago

I think a flexible budget is when you adjust your spending based on changes in activity or costs.

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Karrie

2 months ago

I agree, a flexible budget is like having extra money for unexpected expenses.

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Franchesca

3 months ago

I think both are important, but ultimately a flexible budget should be able to adapt to both activity and cost changes.

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Clemencia

3 months ago

Hmm, I'm torn between C and D. I guess it depends on the specific situation, but both seem like valid options.

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Lorita

3 months ago

I agree, but D could also be correct since costs can also impact a flexible budget.

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Olive

3 months ago

I think it's C, because a flexible budget is adjusted based on changes in activity.

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Angella

3 months ago

But what about changing the budget in response to changes in costs? Wouldn't that be important too?

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Emmanuel

3 months ago

D) changed in response to changes in costs. That's a good one too, the budget should reflect the real cost fluctuations.

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Mauricio

2 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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Brittani

3 months ago

D) changed in response to changes in costs

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Alexis

3 months ago

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

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Audra

3 months ago

I agree with Antione, it makes sense to adjust the budget based on activity changes.

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Gary

4 months ago

C) changed in response to changes in the level of activity. Makes sense, a flexible budget should adapt to the actual activity levels.

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Camellia

3 months ago

D) changed in response to changes in costs

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Yong

3 months ago

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

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Leeann

3 months ago

B) continuously updated by adding a further accounting period when the earliest accounting period has expired

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Camellia

3 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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Antione

4 months ago

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

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