CIMA Exam CIMAPRO19-P02-1 Topic 1 Question 68 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 68
Topic #: 1

[All CIMAPRO19-P02-1 Questions]

Residual income is an appropriate performance measure for which type of responsibility centre?

ACost centre

BRevenue centre

CInvestment centre

DProfit centre

Show Suggested Answer

Suggested Answer: A

by Kristeen at Mar 29, 2023, 01:16 PM

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Stacey

30 days ago

Wait, is this a trick question? Residual income sounds like something you'd find in a mattress, not a performance measure!

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Ariel

1 months ago

Investment centre, for sure! Residual income helps you figure out if you're truly generating value, not just raking in the cash.

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Albina

1 days ago

D) Profit centre

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Tayna

3 days ago

Definitely! Residual income is a great measure for investment centres.

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Carole

11 days ago

C) Investment centre

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Amie

1 months ago

Ah, the old residual income question. I bet the answer is D) Profit centre, where you can really see the bottom line impact.

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Lenny

8 days ago

Residual income is a great way to measure the profitability of a specific segment of a business.

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Celeste

17 days ago

Yeah, in a Profit centre you can really see how much value is being added beyond just covering costs.

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Marnie

18 days ago

I think you're right, residual income is definitely most appropriate for a Profit centre.

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Tonja

2 months ago

I'm gonna go with C) Investment centre. Residual income gives you a better picture of the actual value being created, rather than just raw profits.

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Elvera

27 days ago

Residual income can help us make better investment decisions in the long run.

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Silvana

1 months ago

I think it's important to consider the value being created, not just the profits.

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Tien

1 months ago

I agree, residual income is a great measure for investment centres.

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Annalee

1 months ago

Residual income can help show the true performance of an investment centre.

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Gwenn

1 months ago

I think it's important to consider the value being created, not just the profits.

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Susana

2 months ago

I agree, residual income is a great measure for investment centres.

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Nadine

2 months ago

Hmm, residual income seems like a great fit for investment centres. Gotta maximize that return on investment, am I right?

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Trina

1 months ago

C) Investment centre

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Bettyann

1 months ago

Definitely! Residual income is a key measure for investment centres.

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Kathrine

1 months ago

D) Profit centre

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Juliann

2 months ago

C) Investment centre

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Lindy

2 months ago

B) Revenue centre

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Laticia

2 months ago

A) Cost centre

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Aleisha

3 months ago

I'm not sure, but I think residual income could also work for profit centre since it focuses on profitability.

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Dyan

3 months ago

I agree with Mitsue, residual income is a good measure for investment centre because it considers both income and expenses.

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Mitsue

3 months ago

I think residual income is best for investment centre.

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