CIMAPRA17-BA1-1 Exam - Topic 4 Question 99 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 99
Topic #: 4

industrial action is more likely to occur within a large organisation than a small organisation, due to senior management becoming re managers becoming complacent, as well as shop floor hostility. The effect of this will be an increasing average cost as production

The statement above is most closely describing an example of which of the following?

AExternal diseconomy of scale.

BInternal diseconomy of scale

CInternal economy of scale

DExternal economy of scale

Show Suggested Answer

Suggested Answer: B

by Augustine at Sep 17, 2024, 11:51 PM

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Raymon

3 months ago

Not sure if this always leads to higher costs though.

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Whitney

3 months ago

Interesting point about shop floor hostility!

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Dalene

3 months ago

Really? I thought small companies had their own issues too.

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Gilma

4 months ago

Totally agree, complacency is a big issue!

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Hassie

4 months ago

Large orgs often face more industrial action.

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Ernestine

4 months ago

I’m confused about the difference between internal and external economies. Could this be an internal diseconomy since it mentions shop floor hostility?

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Yesenia

4 months ago

This reminds me of a practice question we did about how large firms can face higher costs due to inefficiencies. I think it’s definitely related to internal factors.

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Cathrine

4 months ago

I’m not entirely sure, but I think the answer might be B, since it talks about issues within the organization itself.

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Lashonda

5 months ago

I remember discussing how internal diseconomies of scale can arise from management issues and employee dissatisfaction.

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Cyndy

5 months ago

Okay, I think I've got it. The key is that the passage is describing how the large organization's size is leading to these issues, so it's an internal diseconomy of scale. The external factors like hostility are a result of the organization's size, not the cause. I'm feeling pretty confident about B.

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Ilda

5 months ago

Hmm, I'm a bit confused by this one. The passage mentions both senior management complacency and shop floor hostility, so I'm not sure if it's just an internal diseconomy or if there could be external factors at play as well. I'll have to think this through carefully.

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Domonique

5 months ago

This question seems straightforward. The passage talks about how industrial action is more likely in large organizations, leading to higher costs, so I think the answer is B - Internal diseconomy of scale.

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Desmond

5 months ago

This is a tricky one. The passage talks about both internal and external factors, so I'm not sure if it's just an internal diseconomy. I might need to re-read it a few times to make sure I understand the distinction between the different types of economies and diseconomies of scale. I don't want to rush into an answer on this one.

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Leanora

1 year ago

This is a tough one, but I'm going to have to go with B) Internal diseconomy of scale. The description just seems to match up with that concept the best, even if it's a bit convoluted. Let's hope the graders are feeling generous!

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Jutta

1 year ago

I'm not sure, but I'll go with B) Internal diseconomy of scale as well. It seems to fit the description the best.

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Casey

1 year ago

I think it could also be external diseconomy of scale, considering the impact of external factors on the organization.

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Therese

1 year ago

I agree, it does seem like a case of internal diseconomy of scale.

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Graciela

1 year ago

But isn't shop floor hostility also a factor? Maybe it's a combination of internal and external diseconomies of scale.

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Joesph

1 year ago

Haha, this question is trying to trip us up! But I think the answer is still B) Internal diseconomy of scale. Gotta stay on your toes in these exams, am I right?

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Paulene

1 year ago

I agree with Norah, senior management becoming complacent can lead to increased costs.

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Mollie

1 year ago

Hmm, I'm not sure about this one. The question seems a bit tricky. Let me think... I'll go with B) Internal diseconomy of scale. Sounds like the best fit to me.

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Lavonda

1 year ago

I think the correct answer is B) Internal diseconomy of scale. The description of industrial action and rising costs due to management complacency and shop floor hostility seems to fit the concept of internal diseconomies of scale.

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