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CXC CAPE · · Accounting

Budgeting and variance analysis
Practice Questions

40 CXC CAPE Accounting questions on Budgeting and variance analysis, each with instant feedback and a full examiner-style mark scheme.

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✨ Revision guide includes key terms, worked examples and exam technique for Budgeting and variance analysis.

Try 2 sample questions on Budgeting and variance analysis

Question 1 · 1 mark · Difficulty 1/3

What is the principal budget factor?

  1. The department that prepares the budget
  2. The constraint that everything else is planned around, usually sales demand
  3. The profit target set by the owners
  4. The largest single cost in the budget
Show answer & explanation
✓ Answer: B — The constraint that everything else is planned around, usually sales demand
Award 1 mark. It determines the order of preparation — planning production before knowing what can be sold is how warehouses fill with unsold stock.
Question 2 · 1 mark · Difficulty 1/3

What is a flexed budget?

  1. A budget prepared for a single planned level of activity
  2. A budget that may be changed at any time during the period
  3. A budget restated at the activity level actually achieved
  4. A budget covering more than one financial year
Show answer & explanation
✓ Answer: C — A budget restated at the activity level actually achieved
Award 1 mark. Restating it strips out the volume effect and leaves the differences management can genuinely be asked about.
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20 questions · 25 min · free

CXC CAPE Accounting: Budgeting and variance analysis FAQ

Is Kramizo free for CXC CAPE students preparing for Accounting?
Yes — completely free. Every student gets 45 questions a day on the free plan, with no card required and no trial countdown. That free quota works across every subject and every topic in our bank, so you can mix Budgeting and variance analysis practice with other Accounting topics or even switch to a totally different CXC CAPE subject without paying anything. Kramizo's optional Pro plan removes the daily cap and adds detailed progress analytics, but the free tier is the real product — used by thousands of GCSE, IGCSE and CSEC students.
Are the Budgeting and variance analysis questions aligned to the official CXC CAPE Accounting syllabus?
Every question is written against the published CXC CAPE Accounting specification, including the exact command words (state, describe, explain, calculate, evaluate, etc.), mark allocations, and difficulty tier you'd see on a real CXC CAPE paper. Explanations are written in the style of official examiner mark schemes — they tell you what is being awarded marks and why distractors are wrong, not just whether you got it right. The bank is continually refined to match the latest syllabus updates from CXC CAPE.
How is Budgeting and variance analysis typically tested on CXC CAPE Accounting papers?
Budgeting and variance analysis appears across multiple question types on real CXC CAPE Accounting papers — most commonly as multiple-choice questions in the objective section, structured short-answer questions in the main paper, and occasionally as part of an extended response. Kramizo's practice bank reflects that mix: 4-option MCQs, true/false statements, fill-in-the-blank key terms, multi-select questions, and ordering questions. Working through the bank gives you exposure to every question style examiners actually use.

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