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

Which of the following statements best explains why a corporate treasury department should be established as a cost centre rather than a profit centre?
A . The Treasury Department should not be encouraged to speculate.
B . The Treasurer should not have a great deal of responsibility.
C . There is no way for the Treasury Department to generate revenue.
D . The Treasurer has the ability to manipulate the Department’s reported profit.

View Answer

Answer: A