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CIMA Exam CIMAPRA19-E01-1 Topic 2 Question 88 Discussion

Actual exam question for CIMA's CIMAPRA19-E01-1 exam
Question #: 88
Topic #: 2
[All CIMAPRA19-E01-1 Questions]

Bright Idea Co. specialises in manufacturing light bulb filaments. It is considering outsourcing some of it activities in order to reduce costs and improve customer service.

Which of the following is an example of asset specificity that is likely to be an important consideration in their decision?

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Suggested Answer: A

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3 days ago
Option B is the clear winner here. A building specifically designed for manufacturing light bulb filaments is a highly specialized asset that would be difficult and costly to replicate elsewhere.
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