CIMA Exam CIMAPRA17-BA1-1 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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Leanora

1 months 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

13 days 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

22 days 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

26 days ago

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

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Graciela

2 months 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

2 months 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

2 months ago

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

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Mollie

2 months 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

2 months 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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