Discuss CIMA CIMAPRO19-P02-1 Exam Topic 3 Question 44

Which of the following statements are correct with regard to responsibility centres?

Select ALL that apply.

ARevenue centre managers have a lower level of decision-making authority than profit centre managers.

BRevenue centre managers and profit centre managers are accountable for controllable costs only.

CProfit centre managers and investment centre managers are responsible for the majority of operating costs incurred.

DInvestment centre managers have a higher level of managerial authority than profit centre managers.

EManagers of profit centres have authority over the level of investment in working capital but managers of cost centres do not.

Suggested Answer: A, C, D

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9 comments · newest first

Felix 12 months ago

C seems off; not all operating costs fall on profit and investment centre managers.

Alida 1 year ago

Wait, I thought profit centre managers handled all costs, not just controllable ones!

Essie 1 year ago

B is misleading; profit centre managers are accountable for more than just controllable costs.

Darnell 1 year ago

Totally agree with D, investment centre managers do have more power.

Kristofer 1 year ago

A is definitely true! Revenue centre managers have less authority.

Lavonne 1 year ago

Hmm, I'm a little unsure about this one. I think B might be the right answer, using verbs instead of nouns. But I'll have to think it through more carefully.

Arlen 1 year ago

The part that confuses me is how to break down the actual server usage for both providers. I practiced something similar last week, and it was tricky then too.

Chaya 1 year ago

If I recall, Cisco Tetration is more about monitoring, not necessarily mitigating risks directly—are we sure that's the right choice?

Annamaria 1 year ago

I feel pretty confident about this question. Based on my understanding of IT management, the IT steering committee would be the most appropriate group to approve new technology implementation.

CIMAPRO19-P02-1 Exam - Topic 3 Question 44 Discussion