Post Utme Lead City University 2020 Commerce Question 27

Practice objective / multiple choice question 27 from the 2020 Post Utme Lead City University Commerce examination.

Post Utme Lead City University 2020 Commerce Objective / Multiple Choice
Question 27 POST_UTME_LEAD_CITY_UNIVERSITY • 2020 • COMMERCE • objective

A company is considering the introduction of a new product line. The product has a high fixed cost of production, but the variable cost per unit is low. Which of the following is a correct description of the production cost structure?

Answer Options

Correct Answer A. The company has a high fixed cost and a low variable cost.
B. The company has a low fixed cost and a high variable cost.
C. The company has a high fixed cost and a high variable cost.
D. The company has a low fixed cost and a low variable cost.
Correct Answer
A
Correct Option:
The company has a high fixed cost and a low variable cost.

About This Question

This is Post Utme Lead City University 2020 Commerce Question 27. It is one of the objective questions from the 2020 Post Utme Lead City University Commerce examination.

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