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CIMAPRO19-P03-1 Exam - Topic 1 Question 40 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam
Question #: 40
Topic #: 1
[All CIMAPRO19-P03-1 Questions]

Which of the following statements best explains why a corporate treasury department should be established as a cost centre rather than a profit centre?

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Suggested Answer: A, B, D

by Malinda at Oct 27, 2022, 03:56 PM

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Broderick
4 months ago
I think A is too limiting, some risk can be beneficial.
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Polly
4 months ago
B is a bit off, Treasurers have important responsibilities!
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Mattie
4 months ago
Wait, can the Treasurer really manipulate profits? Sounds sketchy.
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Brittni
4 months ago
Totally agree with A, speculation can be risky!
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Lanie
4 months ago
C makes sense, they can't really generate revenue.
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Fannie
5 months ago
I thought the treasury could generate some revenue through investments, but if it's a cost centre, then maybe option C is the best choice after all.
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Garry
5 months ago
I feel like we covered something similar in practice questions, and I think the idea of a cost centre is to limit the treasurer's influence on profits, which might relate to option D.
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Simona
5 months ago
I'm not entirely sure, but I think option A could be right since speculating could lead to unnecessary risks.
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Casie
5 months ago
I remember discussing how a treasury department focuses on managing cash flow rather than generating profit, so maybe option C makes sense.
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Armanda
5 months ago
Okay, let's see. The question is asking about the codec that needs to be configured on the dial peer to resolve the message waiting light problem. I'll need to review my notes on the different codecs and their characteristics.
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Roselle
5 months ago
Okay, I think I've got this. If the "Enable Content Pack Creation" setting is unchecked, users should be limited in what they can do with existing content packs. I'll go with the option that seems most restrictive.
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Verda
9 months ago
I'm going with option C. The Treasury Department is like the Swiss Army Knife of the finance world - it has a lot of tools, but it doesn't really make money on its own.
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Mary
9 months ago
Option B is just silly. The Treasurer should have a significant level of responsibility to ensure proper cash management and financial controls.
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Ettie
8 months ago
D) The Treasurer has the ability to manipulate the Department's reported profit.
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Kenda
8 months ago
C) There is no way for the Treasury Department to generate revenue.
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Cory
8 months ago
B) The Treasurer should not have a great deal of responsibility.
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Mabelle
9 months ago
A) The Treasury Department should not be encouraged to speculate.
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Boris
10 months ago
I think option A is the best answer. We don't want the Treasury Department to take unnecessary risks by speculating, so it's better to set it up as a cost center.
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Sophia
9 months ago
It's important to prioritize financial stability over potential profits.
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Evangelina
9 months ago
Setting up the Treasury Department as a cost center helps control speculation.
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Gracia
9 months ago
I agree, option A makes sense. We want to avoid unnecessary risks.
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Pearly
10 months ago
I disagree with option D. The Treasurer should have integrity and not manipulate the department's reported profit. That would be unethical.
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Catarina
8 months ago
Alysa: That's true, being a cost centre helps maintain financial stability.
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Marylyn
8 months ago
User 3: I think it's important for the Treasury Department to focus on cost control rather than generating revenue.
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Alysa
8 months ago
User 2: Option A makes sense, the Treasury Department should not speculate.
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Marci
8 months ago
User 1: I agree, the Treasurer should not manipulate profits.
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Lonna
8 months ago
User 4: Speculation should be avoided in the Treasury Department.
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Floyd
8 months ago
User 3: The Treasury Department should focus on managing costs, not generating revenue.
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Margurite
8 months ago
User 2: Option D is concerning, integrity is important.
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Brandon
10 months ago
User 1: I agree, the Treasurer should not manipulate profits.
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Desmond
10 months ago
I believe the Treasury Department should focus on managing costs and risks, rather than trying to make profits.
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Jordan
10 months ago
Option C makes the most sense to me. The Treasury Department is primarily responsible for managing cash and liquidity, not generating revenue. It's a support function, not a profit center.
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Tennie
10 months ago
User 2: Definitely, it's important to keep the focus on liquidity and risk management.
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Una
10 months ago
User 1: I agree, the Treasury Department is all about managing cash, not making money.
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James
10 months ago
I agree with Zena. Speculating can be risky and may not align with the company's objectives.
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Zena
11 months ago
I think the answer is A) The Treasury Department should not be encouraged to speculate.
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