Post Utme Al Hikmah University 2021 Commerce Question 2

Practice objective / multiple choice question 2 from the 2021 Post Utme Al Hikmah University Commerce examination.

Post Utme Al Hikmah University 2021 Commerce Objective / Multiple Choice
Question 2 POST_UTME_AL-HIKMAH_UNIVERSITY • 2021 • COMMERCE • objective

A company is considering two different production processes for a new product. Process A has a higher fixed cost but a lower variable cost, while Process B has a lower fixed cost but a higher variable cost. Which process should the company choose if it expects to produce 10,000 units?

Answer Options

Correct Answer A. Process A
B. Process B
C. It depends on the company's expectations for future production levels.
D. The company should choose the process with the lower total cost.
Correct Answer
A
Correct Option:
Process A

About This Question

This is Post Utme Al Hikmah University 2021 Commerce Question 2. It is one of the objective questions from the 2021 Post Utme Al Hikmah University Commerce examination.

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