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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
3 months 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
3 months 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
3 months 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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Annett
2 months ago
The sales director's popularity might be valuable, but it's not as directly related to asset specificity.
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Destiny
2 months ago
The high tech filling machines are also crucial for production efficiency and quality.
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Vannessa
2 months ago
The R&D manager with specialist knowledge is important too, but the building is a more tangible asset.
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Galen
2 months ago
I agree, having a building specifically designed for manufacturing light bulb filaments is a big investment.
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Beth
3 months ago
That's important too, but I think the building is a better example of asset specificity.
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Laurel
3 months ago
What about the R&D manager with specialist knowledge?
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Colette
3 months ago
Yes, it's crucial for their decision. Like the building designed for manufacturing filaments.
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Yvonne
3 months 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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Yvonne
2 months ago
D) A sales director who is well known and popular throughout the industry.
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Charisse
2 months ago
C) High tech and expensive filling machines in the factory.
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Merlyn
2 months ago
B) A building that has been designed specifically for manufacturing light bulb filaments.
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Elza
3 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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Beth
3 months ago
I think asset specificity is important for Bright Idea Co.
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