CIMA Exam CIMAPRA17-BA1-1 Topic 3 Question 107 Discussion

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

Question #: 107
Topic #: 3

[All CIMAPRA17-BA1-1 Questions]

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

ALarger companies may gain greater market share through advertising

BLarger companies may spread their fixed research and development costs over a larger amount of output

CLarger companies may more easily access public subsidies

DLarger companies may obtain lower interest rates on their loans.

ELarger companies may purchase inputs in bulk at lower unit prices

FLarger companies may benefit from greater customer loyalty

Show Suggested Answer

Suggested Answer: C, D, E

by France at Feb 10, 2025, 04:15 PM

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2 days ago

Yeah, that makes sense. It helps them lower their average costs per unit.

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6 days ago

I think larger companies benefit from economies of scale by spreading their fixed costs over more output.

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14 days ago

I think the key factors are B, E, and F. Spreading R&D costs and bulk purchasing are classic economies of scale.

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5 days ago

I agree, spreading R&D costs and bulk purchasing definitely help larger companies.

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