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

Actual exam question for CIMA's CIMAPRO19-P03-1 exam

Question #: 40
Topic #: 1

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

AThe Treasury Department should not be encouraged to speculate.

BThe Treasurer should not have a great deal of responsibility.

CThere is no way for the Treasury Department to generate revenue.

DThe Treasurer has the ability to manipulate the Department's reported profit.

Show Suggested Answer

Suggested Answer: A, B, D

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

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Pearly

8 days 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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Desmond

12 days ago

I believe the Treasury Department should focus on managing costs and risks, rather than trying to make profits.

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Jordan

13 days 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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James

14 days ago

I agree with Zena. Speculating can be risky and may not align with the company's objectives.

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Zena

17 days ago

I think the answer is A) The Treasury Department should not be encouraged to speculate.

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