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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

by Lera at May 23, 2024, 12:36 PM

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Brice
11 months ago
I'd go with Option C. Those high-tech and expensive filling machines are a major investment that would be hard to replicate elsewhere. Outsourcing that would be a risky move.
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Jade
11 months ago
What kind of 'Bright Idea' is it to outsource their core manufacturing capabilities? That's like a light bulb factory outsourcing the production of light bulbs!
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Melissa
11 months ago
I agree with Devora. The building is a prime example of asset specificity that Bright Idea Co. would need to consider carefully.
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Ceola
10 months ago
C) High tech and expensive filling machines in the factory.
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Chandra
10 months ago
B) A building that has been designed specifically for manufacturing light bulb filaments.
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Sarina
10 months ago
A) An R&D manager who has been in the business for 18 years and has specialist knowledge of the formulations.
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Devora
11 months 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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Val
9 months ago
Definitely, it would be a significant consideration in their decision-making process.
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Jacquelyne
9 months ago
I agree, having a building specifically designed for manufacturing light bulb filaments is a unique asset that would be hard to replace.
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Buck
10 months ago
Yes, having a building designed specifically for manufacturing light bulb filaments is crucial for the company's operations.
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Novella
10 months ago
Yes, it would definitely be a major consideration in their decision to outsource activities.
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Twanna
10 months ago
I agree, having a building specifically designed for manufacturing light bulb filaments is a key asset that would be hard to replace.
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Evangelina
10 months ago
I agree, option B is definitely a key asset specificity to consider.
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