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

Larger companies may benefit from economies of scale due to which THREE of the following?
C) Larger companies may more easily access public subsidies and D) Larger companies may obtain lower interest rates on their loans. and E) Larger companies may purchase inputs in bulk at lower unit prices
A) Larger companies may gain greater market share through advertising
B) Larger companies may spread their fixed research and development costs over a larger amount of output
F) Larger companies may benefit from greater customer loyalty

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
9 months ago
They definitely get better interest rates on loans!
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Kendra
10 months ago
Totally agree, bulk buying definitely lowers costs!
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Tiffiny
10 months ago
Larger companies can spread R&D costs over more output.
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Shala
10 months ago
Wait, do they really access more public subsidies? That seems odd.
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Sanjuana
10 months ago
Really? I doubt they get that much customer loyalty just for being big.
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Kenneth
10 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
11 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
11 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
11 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
11 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
12 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
12 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
12 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
1 year 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
2 years 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
2 years 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
2 years 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
2 years ago
I agree, those options seem like the most logical choices for economies of scale benefits.
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Carry
2 years ago
I think you're on the right track. B, D, and E all make sense for larger companies.
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Albina
2 years 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
2 years ago
Customer loyalty is key for larger companies to maintain their economies of scale.
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Dottie
2 years ago
Bulk purchasing at lower unit prices is a smart move for larger companies to benefit from.
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Benton
2 years ago
I agree, spreading R&D costs over more output can definitely lead to economies of scale.
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Kendra
2 years 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
2 years ago
Customer loyalty is important too, but I think A, B, and E are the top benefits.
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Moon
2 years ago
Bulk buying definitely helps in getting lower unit prices for inputs.
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Isadora
2 years ago
Spreading research and development costs over a larger output makes sense.
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Tamesha
2 years ago
I agree, advertising can really help larger companies gain market share.
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Sharen
2 years 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
2 years 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
2 years 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
2 years 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
2 years ago
Lower interest rates on loans and bulk purchasing at lower prices are also key advantages for larger companies.
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Lakeesha
2 years ago
I agree, spreading R&D costs over more output can definitely help larger companies.
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