IIA Exam IIA-CIA-Part3 Topic 11 Question 82 Discussion

Actual exam question for IIA's IIA-CIA-Part3 exam

Question #: 82
Topic #: 11

Which of the following statements is true regarding the term "flexible budgets" as it is used in accounting?

AThe term describes budgets that exclude fixed costs.

BFlexible budgets exclude outcome projections, which are hard to determine, and instead rely on the most recent actual outcomes.

CThe term is a red flag for weak budgetary control activities.

DFlexible budgets project data for different levels of activity.

Show Suggested Answer

Suggested Answer: D

by Tommy at Jul 02, 2024, 07:26 AM

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Dick

7 months ago

I believe option D is more accurate because flexible budgets do project data for different levels of activity, which is their main purpose.

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Rene

7 months ago

But doesn't flexible budgets also exclude outcome projections, like option B says?

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Jesusita

8 months ago

C is definitely a red flag. Weak budgetary control? That's a recipe for disaster in any organization.

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Lauran

7 months ago

D) Flexible budgets project data for different levels of activity.

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Caren

7 months ago

C) The term is a red flag for weak budgetary control activities.

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Alpha

7 months ago

B) Flexible budgets exclude outcome projections, which are hard to determine, and instead rely on the most recent actual outcomes.

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Reita

7 months ago

A) The term describes budgets that exclude fixed costs.

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Ilene

8 months ago

Haha, 'flexible budgets' sounds like an oxymoron to me. How can a budget be flexible? That's like having a 'jumbo shrimp'!

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Alishia

8 months ago

I'm not so sure about that. Flexible budgets seem to be more about adaptability than just projecting data for different activity levels.

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Providencia

8 months ago

D seems like the correct answer here. Flexible budgets are designed to account for different activity levels, which is the key feature.

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Elliott

7 months ago

I agree, that's the key feature of flexible budgets.

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Lillian

7 months ago

I think D is the correct answer. Flexible budgets project data for different levels of activity.

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Minna

8 months ago

I agree with Omer, flexible budgets project data for different levels of activity.

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Omer

8 months ago

I think the answer is D.

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