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CIMA Exam CIMAPRO19-P03-1 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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Verda
1 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
1 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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Kenda
2 days ago
C) There is no way for the Treasury Department to generate revenue.
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Cory
7 days ago
B) The Treasurer should not have a great deal of responsibility.
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Mabelle
20 days ago
A) The Treasury Department should not be encouraged to speculate.
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Boris
1 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
16 days ago
It's important to prioritize financial stability over potential profits.
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Evangelina
17 days ago
Setting up the Treasury Department as a cost center helps control speculation.
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Gracia
20 days ago
I agree, option A makes sense. We want to avoid unnecessary risks.
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Pearly
2 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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Lonna
User 4: Speculation should be avoided in the Treasury Department.
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Floyd
3 days ago
User 3: The Treasury Department should focus on managing costs, not generating revenue.
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Margurite
4 days ago
User 2: Option D is concerning, integrity is important.
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Brandon
1 months ago
User 1: I agree, the Treasurer should not manipulate profits.
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Desmond
2 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
2 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
2 months ago
User 2: Definitely, it's important to keep the focus on liquidity and risk management.
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Una
2 months ago
User 1: I agree, the Treasury Department is all about managing cash, not making money.
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James
2 months ago
I agree with Zena. Speculating can be risky and may not align with the company's objectives.
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Zena
2 months ago
I think the answer is A) The Treasury Department should not be encouraged to speculate.
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