CAIE A-Level Business 5.5.1 Budgets

Practise explaining how budgets allocate, coordinate and control resources, distinguishing incremental, flexible and zero budgeting and analysing their benefits and drawbacks.

Syllabus
2026–2028
Objective
5.5.1
Level
—

Exam points

  • define zero budgeting as justifying each expenditure afresh rather than carrying forward prior figures
  • explain a budget benefit through target setting, resource allocation, coordination or cost control
  • analyse a drawback through inflexibility, gaming, demotivation, time cost or inaccurate assumptions

Question 1(b)(ii)

[Maximum number: 3]

Explain one drawback to SF of using budgets.