Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

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?

Show Suggested Answer Hide Answer
Suggested Answer: A, B, D

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

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P03-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Broderick
5 months ago
I think A is too limiting, some risk can be beneficial.
upvoted 0 times
...
Polly
6 months ago
B is a bit off, Treasurers have important responsibilities!
upvoted 0 times
...
Mattie
6 months ago
Wait, can the Treasurer really manipulate profits? Sounds sketchy.
upvoted 0 times
...
Brittni
6 months ago
Totally agree with A, speculation can be risky!
upvoted 0 times
...
Lanie
6 months ago
C makes sense, they can't really generate revenue.
upvoted 0 times
...
Fannie
6 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.
upvoted 0 times
...
Garry
6 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.
upvoted 0 times
...
Simona
6 months ago
I'm not entirely sure, but I think option A could be right since speculating could lead to unnecessary risks.
upvoted 0 times
...
Casie
7 months ago
I remember discussing how a treasury department focuses on managing cash flow rather than generating profit, so maybe option C makes sense.
upvoted 0 times
...
Armanda
7 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.
upvoted 0 times
...
Roselle
7 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.
upvoted 0 times
...
Verda
11 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.
upvoted 0 times
...
Mary
11 months ago
Option B is just silly. The Treasurer should have a significant level of responsibility to ensure proper cash management and financial controls.
upvoted 0 times
Ettie
10 months ago
D) The Treasurer has the ability to manipulate the Department's reported profit.
upvoted 0 times
...
Kenda
10 months ago
C) There is no way for the Treasury Department to generate revenue.
upvoted 0 times
...
Cory
10 months ago
B) The Treasurer should not have a great deal of responsibility.
upvoted 0 times
...
Mabelle
11 months ago
A) The Treasury Department should not be encouraged to speculate.
upvoted 0 times
...
...
Boris
11 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.
upvoted 0 times
Sophia
11 months ago
It's important to prioritize financial stability over potential profits.
upvoted 0 times
...
Evangelina
11 months ago
Setting up the Treasury Department as a cost center helps control speculation.
upvoted 0 times
...
Gracia
11 months ago
I agree, option A makes sense. We want to avoid unnecessary risks.
upvoted 0 times
...
...
Pearly
1 year ago
I disagree with option D. The Treasurer should have integrity and not manipulate the department's reported profit. That would be unethical.
upvoted 0 times
Catarina
10 months ago
Alysa: That's true, being a cost centre helps maintain financial stability.
upvoted 0 times
...
Marylyn
10 months ago
User 3: I think it's important for the Treasury Department to focus on cost control rather than generating revenue.
upvoted 0 times
...
Alysa
10 months ago
User 2: Option A makes sense, the Treasury Department should not speculate.
upvoted 0 times
...
Marci
10 months ago
User 1: I agree, the Treasurer should not manipulate profits.
upvoted 0 times
...
Lonna
10 months ago
User 4: Speculation should be avoided in the Treasury Department.
upvoted 0 times
...
Floyd
10 months ago
User 3: The Treasury Department should focus on managing costs, not generating revenue.
upvoted 0 times
...
Margurite
10 months ago
User 2: Option D is concerning, integrity is important.
upvoted 0 times
...
Brandon
11 months ago
User 1: I agree, the Treasurer should not manipulate profits.
upvoted 0 times
...
...
Desmond
1 year ago
I believe the Treasury Department should focus on managing costs and risks, rather than trying to make profits.
upvoted 0 times
...
Jordan
1 year 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.
upvoted 0 times
Tennie
12 months ago
User 2: Definitely, it's important to keep the focus on liquidity and risk management.
upvoted 0 times
...
Una
12 months ago
User 1: I agree, the Treasury Department is all about managing cash, not making money.
upvoted 0 times
...
...
James
1 year ago
I agree with Zena. Speculating can be risky and may not align with the company's objectives.
upvoted 0 times
...
Zena
1 year ago
I think the answer is A) The Treasury Department should not be encouraged to speculate.
upvoted 0 times
...

Save Cancel