CIMAPRO19-P02-1 Exam - Topic 1 Question 68 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 68
Topic #: 1

[All CIMAPRO19-P02-1 Questions]

Residual income is an appropriate performance measure for which type of responsibility centre?

ACost centre

BRevenue centre

CInvestment centre

DProfit centre

Show Suggested Answer

Suggested Answer: A

by Kristeen at Mar 29, 2023, 01:16 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P02-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Elvera

7 months ago

Yup, investment centre is the right answer!

upvoted 0 times

...

Odette

7 months ago

Just a fact: investment centres focus on returns on investments.

upvoted 0 times

...

Carey

7 months ago

Wait, are you sure it's not for profit centres?

upvoted 0 times

...

Rosendo

7 months ago

Totally agree, it measures profitability effectively!

upvoted 0 times

...

Tasia

8 months ago

Residual income is best for investment centres.

upvoted 0 times

...

Mose

8 months ago

I’m a bit confused; I thought residual income was relevant for cost centres as well, but that doesn’t seem right now.

upvoted 0 times

...

Phillip

8 months ago

I feel like residual income could apply to profit centres, but investment centres seem more fitting based on what I studied.

upvoted 0 times

...

Devorah

8 months ago

I remember practicing a question about performance measures, and I think profit centres were mentioned too.

upvoted 0 times

...

King

8 months ago

I think residual income is mainly used for investment centres, but I'm not entirely sure.

upvoted 0 times

...

Fairy

8 months ago

Okay, let's see here. I think the key is to make sure the object is properly deployed and accessible. I'll double-check the object's status and permissions.

upvoted 0 times

...

Shawnda

8 months ago

Hmm, I'm a bit unsure about this one. I'll need to think carefully about how to approach it and make sure I don't come across as biased or confrontational.

upvoted 0 times

...

Quiana

8 months ago

Hmm, this seems like a tricky one. I'll need to think carefully about the different Azure networking resources and which ones require IP addresses in the subnets.

upvoted 0 times

...

Stacey

1 year ago

Wait, is this a trick question? Residual income sounds like something you'd find in a mattress, not a performance measure!

upvoted 0 times

...

Ariel

1 year ago

Investment centre, for sure! Residual income helps you figure out if you're truly generating value, not just raking in the cash.

upvoted 0 times

Vivan

11 months ago

That's true! Profit centres can also benefit from using residual income as a performance measure.

upvoted 0 times

...

Albina

11 months ago

D) Profit centre

upvoted 0 times

...

Tayna

11 months ago

Definitely! Residual income is a great measure for investment centres.

upvoted 0 times

...

Carole

12 months ago

C) Investment centre

upvoted 0 times

...

Amie

1 year ago

Ah, the old residual income question. I bet the answer is D) Profit centre, where you can really see the bottom line impact.

upvoted 0 times

Lenny

12 months ago

Residual income is a great way to measure the profitability of a specific segment of a business.

upvoted 0 times

...

Celeste

12 months ago

Yeah, in a Profit centre you can really see how much value is being added beyond just covering costs.

upvoted 0 times

...

Marnie

12 months ago

I think you're right, residual income is definitely most appropriate for a Profit centre.

upvoted 0 times

...

Tonja

1 year ago

I'm gonna go with C) Investment centre. Residual income gives you a better picture of the actual value being created, rather than just raw profits.

upvoted 0 times

Elvera

1 year ago

Residual income can help us make better investment decisions in the long run.

upvoted 0 times

...

Silvana

1 year ago

I think it's important to consider the value being created, not just the profits.

upvoted 0 times

...

Tien

1 year ago

I agree, residual income is a great measure for investment centres.

upvoted 0 times

...

Annalee

1 year ago

Residual income can help show the true performance of an investment centre.

upvoted 0 times

...

Gwenn

1 year ago

I think it's important to consider the value being created, not just the profits.

upvoted 0 times

...

Susana

1 year ago

I agree, residual income is a great measure for investment centres.

upvoted 0 times

...

Nadine

1 year ago

Hmm, residual income seems like a great fit for investment centres. Gotta maximize that return on investment, am I right?

upvoted 0 times

Trina

1 year ago

C) Investment centre

upvoted 0 times

...

Bettyann

1 year ago

Definitely! Residual income is a key measure for investment centres.

upvoted 0 times

...

Kathrine

1 year ago

D) Profit centre

upvoted 0 times

...

Juliann

1 year ago

C) Investment centre

upvoted 0 times

...

Lindy

1 year ago

B) Revenue centre

upvoted 0 times

...

Laticia

1 year ago

A) Cost centre

upvoted 0 times

...

Aleisha

1 year ago

I'm not sure, but I think residual income could also work for profit centre since it focuses on profitability.

upvoted 0 times

...

Dyan

1 year ago

I agree with Mitsue, residual income is a good measure for investment centre because it considers both income and expenses.

upvoted 0 times

...

Mitsue

1 year ago

I think residual income is best for investment centre.

upvoted 0 times

...