Which of the following is NOT included in PRIME for budgets?

Prepare for the CIMA Managing Finance in a Digital World (E1) Exam. Use multiple choice questions and study aids to enhance your knowledge. Get exam-ready with our insights and tips!

Multiple Choice

Which of the following is NOT included in PRIME for budgets?

Explanation:
PRIME for budgets is a framework that identifies five areas that support budgeting and financial control: planning, responsibility, information, motivation, and evaluation. The actual act of creating the budget—budgeting itself—is the process being supported, not a component of the PRIME framework. Therefore budgeting is not included as a PRIME element, while planning and responsibility (and motivation) are.

PRIME for budgets is a framework that identifies five areas that support budgeting and financial control: planning, responsibility, information, motivation, and evaluation. The actual act of creating the budget—budgeting itself—is the process being supported, not a component of the PRIME framework. Therefore budgeting is not included as a PRIME element, while planning and responsibility (and motivation) are.

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