A senior manager is concerned about the dysfunctional consequences of a company's current approach to...

Vendor: CIMA
Product: P2
Update on: Jul 29, 2025
Questions: 202

CIMA P2 Question Answer

A senior manager is concerned about the dysfunctional consequences of a company's current approach to budget preparation. The senior manager has discovered that budget holders are carrying budgetary slack forward from one period to the next without this being identified or challenged.

Which of the following approaches to budget preparation is the company using?

Incremental budgeting

Zero-based budgeting

Activity-based budgeting

Beyond budgeting