CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 65 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 65
Topic #: 1

Which of the following definitions best describes Zero based budgeting?

AA method of budgeting where an attempt is made to make the expenditure under each cost heading as close to zero as possible

BA method of budgeting whereby all activities are re-evaluated each time a budget is formulated

CA method of budgeting where the sum of revenues and expenditures in each budget centre must equal zero

DA method of budgeting whereby every item of expenditure does not have to be justified before its inclusion in the budget

Show Suggested Answer

Suggested Answer: B, C, F

https://www.acowtancy.com/textbook/acca-ma/d2-budget-preparation/master-budgets/notes

by Jeanice at Mar 08, 2024, 08:55 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA2-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Cherry

1 months ago

Hah, zero-based budgeting? More like zero-patience-left budgeting, am I right? Gotta justify every penny these days.

upvoted 0 times

Kenneth

5 days ago

C) A method of budgeting where the sum of revenues and expenditures in each budget centre must equal zero

upvoted 0 times

...

Susana

11 days ago

B) A method of budgeting whereby all activities are re-evaluated each time a budget is formulated

upvoted 0 times

...

Sheridan

19 days ago

A) A method of budgeting where an attempt is made to make the expenditure under each cost heading as close to zero as possible

upvoted 0 times

...

Reena

2 months ago

Oh, this is easy! Option B is the winner. Zero-based budgeting is like a clean slate - no assumptions, just a fresh start every time.

upvoted 0 times

German

7 days ago

User 3: I agree with German, option B is the way to go with zero-based budgeting.

upvoted 0 times

...

Azalee

15 days ago

User 2: I disagree, I believe option B is the correct one. It's about re-evaluating everything each time.

upvoted 0 times

...

Teddy

16 days ago

User 1: I think option A is the best definition. It's all about minimizing costs.

upvoted 0 times

...

Walker

2 months ago

Definitely Option B. Zero-based budgeting is all about justifying every expense, not just trying to get costs down to zero.

upvoted 0 times

...

Jame

2 months ago

I'm not sure about this one. Option A sounds like it could be correct, but it's a bit vague. I'll have to think about this more.

upvoted 0 times

...

Lemuel

2 months ago

Option B seems to be the most accurate description of zero-based budgeting. It's all about re-evaluating everything from scratch each budget cycle, not just trying to minimize costs.

upvoted 0 times

Jacquelyne

7 days ago

True, but option B emphasizes the re-evaluation aspect more.

upvoted 0 times

...

Stephane

15 days ago

But doesn't option A also make sense? Trying to minimize costs to zero?

upvoted 0 times

...

Francoise

17 days ago

I agree, zero-based budgeting involves re-evaluating all activities each time.

upvoted 0 times

...

Merilyn

27 days ago

I think option B is the best choice.

upvoted 0 times

...

Eladia

2 months ago

But doesn't Zero based budgeting focus on justifying every item of expenditure, like in option D?

upvoted 0 times

...

Taryn

2 months ago

I disagree, I believe it's B) A method of budgeting whereby all activities are re-evaluated each time a budget is formulated.

upvoted 0 times

...

Eladia

2 months ago

I think the best definition is A) A method of budgeting where an attempt is made to make the expenditure under each cost heading as close to zero as possible.

upvoted 0 times

...