IIA Exam IIA-CIA-Part3 Topic 9 Question 84 Discussion

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

Question #: 84
Topic #: 9

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 Rene at Jul 14, 2024, 08:32 AM

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Mohammad

4 months ago

Flexible budgets? More like 'flexible minds' when it comes to accounting! Option D has my vote.

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Pearlie

4 months ago

Flexible budgets that rely on actual outcomes? Isn't that just using a crystal ball? Option B seems a bit too far-fetched for me.

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Hoa

3 months ago

Yeah, it's more about adjusting based on actual outcomes.

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Victor

3 months ago

I think it helps in making more accurate projections.

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Pansy

3 months ago

I agree, it's not about predicting the future like a crystal ball.

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Leontine

4 months ago

But isn't relying on actual outcomes a bit risky?

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Art

4 months ago

I think flexible budgets project data for different levels of activity.

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Davida

4 months ago

I agree, it's important to have flexibility in budgets.

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Verlene

4 months ago

I think flexible budgets project data for different levels of activity.

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Marla

4 months ago

Actually, the correct answer is D because flexible budgets adjust for varying levels of activity.

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Alfred

4 months ago

I'm not sure, but I think it's B.

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Florinda

5 months ago

Flexible budgets that exclude fixed costs? That sounds like a recipe for disaster! Option A is definitely not the right answer.

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Dominga

5 months ago

I'm not a fan of flexible budgets. They seem too open-ended and could lead to poor budgetary control. Option C might be the way to go here.

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Viva

4 months ago

Flexible budgets do project data for different levels of activity, so they can be useful in certain situations.

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Sherita

4 months ago

I think option C is a good point, it could indicate weak budgetary control.

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Curtis

4 months ago

I agree, flexible budgets can be tricky to manage.

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Georgeanna

5 months ago

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

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Flo

5 months ago

Flexible budgets sound like a great way to account for changing levels of activity. Option D seems like the most accurate description to me.

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Domonique

4 months ago

Yeah, it's important to have budgets that can adapt to changes in activity levels.

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Glynda

4 months ago

I agree, option D makes sense because flexible budgets adjust for different activity levels.

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Jesse

5 months ago

I think the answer is D.

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