IIA Exam IIA-CIA-Part3 Topic 4 Question 79 Discussion

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

Question #: 79
Topic #: 4

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 Gregg at May 18, 2024, 06:29 PM

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Vanda

7 months ago

D all the way, baby! Flexible budgets give you the agility to adapt to changing circumstances. It's like having a superhero budget, if you ask me.

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Bok

7 months ago

Haha, option C is a classic case of someone trying to sound smart but missing the mark. Flexible budgets aren't a red flag, they're a sign of savvy financial management!

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Patti

6 months ago

Yeah, flexible budgets help in making better financial decisions based on different scenarios.

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Sharita

6 months ago

I agree with you, Sharita. It's important to have budgets that can adjust to changes in activity levels.

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Bethanie

7 months ago

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

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Georgeanna

7 months ago

Option B seems a bit off. Flexible budgets don't exclude outcome projections, they just adjust them based on actual performance.

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Terrilyn

7 months ago

I think option D is the correct answer. Flexible budgets allow for projections at different activity levels, which is crucial for accurate planning.

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Barb

7 months ago

Yes, having the ability to adjust projections based on different activity levels can help with more accurate planning and decision-making.

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Jules

7 months ago

That makes sense. It's important to have flexibility in budgeting to account for varying levels of activity.

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Elfriede

7 months ago

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

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