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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?

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Suggested Answer: C, D, E

Contribute your Thoughts:

Edward
15 days ago
B, E, and F for sure. Though I'm not sure I'd want to work for a company that buys in bulk - imagine the break room snack situation!
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Derrick
16 days ago
I agree with the others, but I'd add a touch of humor - don't forget that larger companies can also afford better catering for their board meetings!
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Amie
5 days ago
A) Larger companies may gain greater market share through advertising
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Maynard
29 days ago
Hmm, I'd also include A. Larger advertising budgets can help larger companies gain more market share.
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Maybelle
30 days ago
I agree. It also allows them to purchase inputs in bulk at lower prices, right?
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Cyndy
30 days ago
Definitely B, E, and F. The other options, like subsidies and lower interest rates, are more related to market power than economies of scale.
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Nicholle
14 days ago
Customer loyalty is also a big advantage for larger companies.
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Kathrine
17 days ago
I agree, spreading fixed costs and purchasing inputs in bulk definitely help with economies of scale.
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Georgene
1 months ago
Yeah, that makes sense. It helps them lower their average costs per unit.
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Asuncion
1 months ago
I think larger companies benefit from economies of scale by spreading their fixed costs over more output.
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Skye
1 months 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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Lorrine
23 days ago
I think customer loyalty is also a big factor in benefiting from economies of scale.
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Reuben
1 months ago
I agree, spreading R&D costs and bulk purchasing definitely help larger companies.
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