Post Utme Abu 2021 Commerce Question 37

Practice objective / multiple choice question 37 from the 2021 Post Utme Abu Commerce examination.

Post Utme Abu 2021 Commerce Objective / Multiple Choice
Question 37 POST_UTME_ABU • 2021 • COMMERCE • objective

A company is considering two different warehouse locations for its new distribution center. Location A has a higher initial investment cost but lower operating costs, while Location B has a lower initial investment cost but higher operating costs. Which of the following is a correct statement about the decision-making process for this company?

Answer Options

A. The company should choose Location A because it has a higher initial investment cost
B. The company should choose Location B because it has a lower initial investment cost
Correct Answer C. The company should choose Location A because it has lower operating costs
D. The company should choose Location B because it has higher operating costs
Correct Answer
C
Correct Option:
The company should choose Location A because it has lower operating costs

About This Question

This is Post Utme Abu 2021 Commerce Question 37. It is one of the objective questions from the 2021 Post Utme Abu Commerce examination.

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