Post Utme Covenant University 2021 Commerce Question 39

Practice objective / multiple choice question 39 from the 2021 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2021 Commerce Objective / Multiple Choice
Question 39 POST_UTME_COVENANT_UNIVERSITY • 2021 • COMMERCE • objective

A company is considering outsourcing its production to a foreign country. The company has identified several potential benefits of outsourcing, including reduced labor costs, improved product quality, and increased flexibility. However, the company is also aware of several potential drawbacks, including increased transportation costs, higher quality control costs, and reduced product availability. Which of the following is a key consideration for the company when deciding whether to outsource?

Answer Options

A. The company's ability to negotiate lower labor costs with its foreign supplier
B. The company's ability to reduce its transportation costs
C. The company's ability to improve product quality
Correct Answer D. The company's ability to reduce its quality control costs
Correct Answer
D
Correct Option:
The company's ability to reduce its quality control costs

About This Question

This is Post Utme Covenant University 2021 Commerce Question 39. It is one of the objective questions from the 2021 Post Utme Covenant University Commerce examination.

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