Post Utme Igbinedion University 2018 Commerce Question 5

Practice objective / multiple choice question 5 from the 2018 Post Utme Igbinedion University Commerce examination.

Post Utme Igbinedion University 2018 Commerce Objective / Multiple Choice
Question 5 POST_UTME_IGBINEDION_UNIVERSITY • 2018 • COMMERCE • objective

A firm is considering two different storage methods for its inventory. Method A involves a one-time payment of ₦300,000 to a warehouse company, while Method B involves a monthly payment of ₦30,000 to a storage facility. If the firm expects to store 10,000 units per year, which storage method should it choose?

Answer Options

A. Method A
Correct Answer B. Method B
C. Both methods are equally effective
D. Neither method is effective
Correct Answer
B
Correct Option:
Method B

About This Question

This is Post Utme Igbinedion University 2018 Commerce Question 5. It is one of the objective questions from the 2018 Post Utme Igbinedion University Commerce examination.

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