CIPS Exam L3M2 Topic 2 Question 23 Discussion

Actual exam question for CIPS's L3M2 exam

Question #: 23
Topic #: 2

The budget for procurement staff costs is 100,000 but only 90,000 has been spent in the period. This has resulted in substantial further work for procurement staff members, sometimes working into the evening or at weekends.

AIs the variance:

BNone of the above?

CAdverse?

DFavourable?

Show Suggested Answer

Suggested Answer: D

As less has been spent than budgeted, the variance is favourable.

by Cheryll at Sep 13, 2024, 09:04 PM

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Paulina

2 months ago

Ooh, this is a tough one. I'm going to have to think about the implications of the extra work before I decide. B might be the safest choice here.

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Major

1 months ago

C) Adverse?

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Alease

1 months ago

B) None of the above?

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Rosendo

2 months ago

A) Is the variance:

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Nida

2 months ago

Haha, this question is trying to trick us! Spending less than the budget is always a good thing, even if the staff had to work harder. Definitely D.

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Noah

2 months ago

Hold up, if they spent less than the budget, how can that be adverse? I think D is the correct answer here.

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Annette

1 months ago

D) Favourable?

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Beth

1 months ago

C) Adverse?

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Rodolfo

1 months ago

B) None of the above?

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Tasia

1 months ago

A) Is the variance:

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Cordie

1 months ago

I think D is the correct answer here.

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Lyla

1 months ago

Hold up, if they spent less than the budget, how can that be adverse?

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Afton

1 months ago

D) Favourable?

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Hayley

2 months ago

C) Adverse?

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Charlette

2 months ago

B) None of the above?

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Melodie

2 months ago

A) Is the variance:

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Ilona

3 months ago

Should we look into why the budgeted amount was not fully utilized and address any inefficiencies?

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Rashida

3 months ago

Yes, it is adverse because the actual cost is less than the budgeted cost, causing extra work for staff.

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Camellia

3 months ago

Is the variance adverse?

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Willis

3 months ago

Woah, this is a tricky one. If the staff had to work extra hours, that sounds like an adverse variance to me. I'm going with C.

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Joana

3 months ago

Hmm, if the budget was 100,000 but only 90,000 was spent, then the variance must be favorable, right? I'm going with D!

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Salena

2 months ago

Hopefully they can take a well-deserved break now.

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Rozella

2 months ago

They must have been working really hard to stay within budget.

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Joye

2 months ago

That's good news for the procurement staff.

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Malcolm

2 months ago

Yes, you're correct! The variance is favorable.

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