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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
10 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
10 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
10 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
9 months ago
C) High tech and expensive filling machines in the factory.
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Chandra
9 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
10 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
9 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
9 months ago
Yes, it would definitely be a major consideration in their decision to outsource activities.
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Twanna
9 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
9 months ago
I agree, option B is definitely a key asset specificity to consider.
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