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CIMA Exam CIMAPRA19-E01-1 Topic 5 Question 102 Discussion

Actual exam question for CIMA's CIMAPRA19-E01-1 exam
Question #: 102
Topic #: 5
[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 Carman at Oct 24, 2024, 04:44 PM

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Corazon
14 days ago
Hmm, tough call. I'm leaning towards the R&D manager, but the factory building is a close second. Either way, they're going to have a tough time with this decision.
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Tonette
15 days ago
Ha! A sales director who's 'well known and popular' - that's a good one. As if that matters for asset specificity. I'm going with the high-tech filling machines, those sound like a real pain to replace.
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Clorinda
16 days ago
I'd say the factory building designed for manufacturing light bulb filaments is the best answer. That kind of specialized infrastructure is a major investment that they'd need to consider carefully.
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Galen
5 days ago
I agree, having a building specifically designed for manufacturing light bulb filaments is a big investment.
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Beth
17 days ago
That's important too, but I think the building is a better example of asset specificity.
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Laurel
20 days ago
What about the R&D manager with specialist knowledge?
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Colette
23 days ago
Yes, it's crucial for their decision. Like the building designed for manufacturing filaments.
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Yvonne
23 days ago
The R&D manager with specialized knowledge is definitely the most relevant asset specificity here. That kind of expertise is hard to replace and crucial for the business.
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Merlyn
6 days ago
B) A building that has been designed specifically for manufacturing light bulb filaments.
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Elza
8 days 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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Beth
25 days ago
I think asset specificity is important for Bright Idea Co.
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