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IMANET CMA Exam - Topic 3 Question 46 Discussion

Actual exam question for IMANET's CMA exam
Question #: 46
Topic #: 3
[All CMA Questions]

The most fundamental responsibility center affected by the use of market-based transfer prices is a(n)

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Suggested Answer: D

Transfer prices are often used by profit centers and investment centers. Profit centers are the more fundamental of these two centers because investment centers are responsible not only for revenues and costs but also for invested capital.


by Vincenza at May 04, 2022, 02:30 PM

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Celia
4 months ago
Production center doesn't fit here at all.
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Anabel
4 months ago
Wait, profit center? Are we sure about that?
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Kimberlie
5 months ago
I always thought it was an investment center.
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Rosendo
5 months ago
I think it's actually a cost center.
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Earnestine
5 months ago
Profit center is definitely the right answer!
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Arlette
5 months ago
Profit centers seem like the right answer because they deal with both costs and revenues, but I might be overthinking it.
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Shoshana
5 months ago
I feel like cost centers are less affected by transfer pricing since they don't deal with revenue directly, but I could be wrong.
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Vesta
5 months ago
I think market-based transfer prices mainly impact profit centers since they focus on revenue generation, but I'm not entirely sure.
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Maurine
5 months ago
I remember practicing a question like this, and I think it was about how production centers deal with costs rather than pricing.
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Pete
5 months ago
I'm pretty sure this is the Clark-Wilson model, which focuses on integrity and requires subjects to access objects through applications.
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Leontine
5 months ago
I like the idea of using focus groups to really understand the information needs of the different stakeholders. That way, I can tailor the communications strategy to their specific requirements.
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Patria
5 months ago
Hmm, I'm a bit unsure about this one. I'll need to review the Azure Security Center documentation to see where the email notification settings are configured.
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