CIMA Exam CIMAPRA17-BA2-1 Topic 2 Question 89 Discussion

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

Question #: 89
Topic #: 2

Johnson & Smith is a huge corporation with many different departments covering hundreds of activities. They had switched to this new budgeting technique as it seemed as though it would help them allocate their limited funds better.

It was successful to some extent as each manager was required to look at every cost his department accrued. They would then be responsible for coming up with new ways of performing these activities.

It became obvious that certain managers were unable to handle these paperwork intensive demands and so the company will be reverting back to a system that focuses primarily on cost drivers next year.

What budgeting technique will they be using next year?

AActivity Based Budgeting

BZero Based Budgeting

CIncremental Budgeting

Show Suggested Answer

Suggested Answer: C

by Sheron at Jan 24, 2025, 11:50 PM

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Julian

2 months ago

Incremental Budgeting? Sounds like they're going for the 'if it ain't broke, don't fix it' approach. Although, with all those managers struggling with the paperwork, maybe they should consider a budgeting system that's a little more 'plug and play'.

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Dyan

5 days ago

B) Zero Based Budgeting

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Colton

6 days ago

I agree, maybe a more straightforward approach would be better for them.

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Franklyn

9 days ago

A) Activity Based Budgeting

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Georgene

10 days ago

Yeah, it seems like they want to simplify things next year.

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Hyun

11 days ago

C) Incremental Budgeting

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Terrilyn

14 days ago

B) Zero Based Budgeting

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Alease

15 days ago

A) Activity Based Budgeting

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Virgie

2 months ago

I bet the managers at Johnson & Smith are secretly hoping for Incremental Budgeting. It's like the comfy, old slippers of budgeting techniques - familiar and easy to slip into, even if they're a little worn out.

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Timothy

16 days ago

I agree, Incremental Budgeting seems like a safe choice.

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Teri

17 days ago

C) Incremental Budgeting

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Lilli

20 days ago

B) Zero Based Budgeting

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Odelia

1 months ago

A) Activity Based Budgeting

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Shelba

2 months ago

I'm not sure, but I think Zero Based Budgeting could also be a good option for them to consider.

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Ronna

2 months ago

Zero Based Budgeting? Sounds like a recipe for disaster. Those managers can't even handle the paperwork for the current system, let alone starting from scratch every year. Incremental Budgeting is the way to go, no doubt about it.

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Lou

1 months ago

Incremental Budgeting is definitely a more practical approach for a company like Johnson & Smith.

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Laticia

2 months ago

I agree, Zero Based Budgeting seems like a lot of work for managers who are already struggling with paperwork.

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Clare

2 months ago

I agree with Adria, Incremental Budgeting makes more sense for a large corporation like Johnson & Smith.

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Derick

2 months ago

Activity Based Budgeting? No way, that's way too complex for a large corporation like Johnson & Smith. They're definitely going with good old Incremental Budgeting - simple and straightforward, just the way they like it.

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