Post Utme Oau 2017 Commerce Question 9

Practice objective / multiple choice question 9 from the 2017 Post Utme Oau Commerce examination.

Post Utme Oau 2017 Commerce Objective / Multiple Choice

Question 9 POST_UTME_OAU • 2017 • COMMERCE • objective

A company is considering two different modes of transportation for its products. Mode A involves a high fixed cost but a low variable cost per unit, while Mode B involves a low fixed cost but a high variable cost per unit. Which mode should the company choose if it expects to transport 10,000 units?

Correct Answer A. Mode A

B. Mode B

C. It depends on the company's expectations for future transportation needs.

D. The company should choose the mode with the lower total cost.

Correct Answer

Correct Option:

Mode A

This is Post Utme Oau 2017 Commerce Question 9. It is one of the objective questions from the 2017 Post Utme Oau Commerce examination.

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