Thursday, 30 July 2015

Cima C01 Exam Question No 18

Question No 18:

A flexible budget is?

A.
A budget which by recognizing different cost behavior patterns is designed to change as the volume of activity changes.
B.
A budget for a defined period of time which includes planned revenues, expenses, assets, liabilities and cash flow.
C.
A budget which is prepared for a period of one year which is reviewed monthly, whereby each time actual results are reported, a further forecast period is added and the intermediate period forecasts are updated.
D.
A budget of semi-variable production costs only.

Answer: A

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