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CIMA Strategic P3 Question # 33 Topic 4 Discussion

P3 Exam Topic 4 Question 33 Discussion:
Question #: 33
Topic #: 4

H is a departmental manager in a private college. The main  measure of performance used to assess the Department Manager's effectiveness is meeting the college budgets. The budget for each year is based on the actual expenditure of the previous year adjusted for specific one-off items.

Which of the following would arise from using the meeting of this type of budget as a performance measurement?
A.

Cost overruns because managers might fail to meet their budgets.

B.

Managers taking on new projects that have too much risk attached to them.

C.

Managers engaging in unnecessary spending in order to avoid having their budgets reduced the following year.

D.

Management of various departments not cooperating sufficiently with each other because each is very concerned that to do so would incur extra costs against their budgets.

E.

Management refusing to provide some necessary service to students (for example, extra tutorials) because it would cause their budget not to be met.

F.

Management taking more than the optimal number of students into their department.

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Actual exam question for CIMA P3 exam by Blaise477 at May 3, 2026, 12:44:16 AM

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