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CIMAPRA17-BA1-1 Exam - Topic 2 Question 97 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam
Question #: 97
Topic #: 2
[All CIMAPRA17-BA1-1 Questions]

Larger companies may benefit from economies of scale due to which THREE of the following?

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Suggested Answer: C, D, E

by Teri at Sep 18, 2024, 01:00 AM

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Bettina
2 months ago
They definitely get better interest rates on loans!
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Kendra
2 months ago
Totally agree, bulk buying definitely lowers costs!
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Tiffiny
2 months ago
Larger companies can spread R&D costs over more output.
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Shala
3 months ago
Wait, do they really access more public subsidies? That seems odd.
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Sanjuana
3 months ago
Really? I doubt they get that much customer loyalty just for being big.
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Kenneth
3 months ago
I was thinking about option A too, but I wonder if advertising really counts as an economy of scale. It seems more like a marketing strategy.
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Marva
3 months ago
I feel like option E is definitely a strong choice. Buying in bulk usually leads to lower prices, right?
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Cassi
4 months ago
I'm not sure about option C. I remember something about subsidies, but I can't recall if they really apply to larger companies specifically.
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Dominque
4 months ago
I think option B makes sense since spreading fixed costs over more output is a classic example of economies of scale.
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Frederick
4 months ago
This is a good test of my understanding of economies of scale. I'll focus on the factors that allow larger companies to reduce their average costs, like spreading R&D over more units and obtaining volume discounts on inputs. I'm confident I can get the right 3 answers.
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Valentin
4 months ago
I'm a little confused by this question. There are a lot of potential factors listed, and I'm not sure which ones are the most important for economies of scale. I'll have to review my notes and try to narrow it down.
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Dallas
4 months ago
Okay, I've got this. The key factors are spreading fixed costs over more output, bulk purchasing discounts, and accessing public subsidies. I'll select those three options and move on.
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Bok
5 months ago
Hmm, I'm a bit unsure about this one. I know economies of scale have to do with how larger companies can reduce their average costs, but I'm not totally clear on the specific factors. I'll have to think this through carefully.
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Jacklyn
5 months ago
This looks like a straightforward question on economies of scale. I'll start by identifying the key factors that can lead to economies of scale, then select the 3 most relevant options.
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Dierdre
1 year ago
This is a no-brainer. B, E, and F are the way to go. Bigger is better, am I right? *wink wink*
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Diane
1 year ago
Is this a trick question? I'm putting down B, D, and E. Those seem like the obvious choices to me. Although, I guess 'larger' could also mean 'fatter', in which case D might not apply. *chuckles*
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Stephaine
1 year ago
Yeah, I would go with B, D, and E as well. They seem like the most practical advantages for larger companies.
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Kristofer
1 year ago
I agree, those options seem like the most logical choices for economies of scale benefits.
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Carry
1 year ago
I think you're on the right track. B, D, and E all make sense for larger companies.
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Albina
1 year ago
Hmm, I'd say B, E, and F. Economies of scale through R&D, bulk purchasing, and customer loyalty. Can't go wrong with that!
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Veronika
1 year ago
Customer loyalty is key for larger companies to maintain their economies of scale.
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Dottie
1 year ago
Bulk purchasing at lower unit prices is a smart move for larger companies to benefit from.
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Benton
1 year ago
I agree, spreading R&D costs over more output can definitely lead to economies of scale.
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Kendra
1 year ago
I'm going with A, B, and E. Advertising, R&D, and bulk buying - that's the winning combination for sure.
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Carmelina
1 year ago
Customer loyalty is important too, but I think A, B, and E are the top benefits.
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Moon
1 year ago
Bulk buying definitely helps in getting lower unit prices for inputs.
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Isadora
1 year ago
Spreading research and development costs over a larger output makes sense.
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Tamesha
1 year ago
I agree, advertising can really help larger companies gain market share.
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Sharen
1 year ago
I also think that larger companies benefit from economies of scale by purchasing inputs in bulk at lower unit prices. It helps them save money and increase their profit margins.
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Linn
1 year ago
I agree with Jacqueline. It makes sense that larger companies can reduce their costs per unit by producing more.
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Jacqueline
1 year ago
I think larger companies benefit from economies of scale by spreading their fixed research and development costs over a larger amount of output.
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Tegan
1 year ago
I think the answer is B, D, and E. Spreading R&D costs, lower interest rates, and bulk purchasing definitely give larger companies an advantage.
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Cordelia
1 year ago
Lower interest rates on loans and bulk purchasing at lower prices are also key advantages for larger companies.
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Lakeesha
1 year ago
I agree, spreading R&D costs over more output can definitely help larger companies.
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