Post Utme Osustech 2017 Commerce Question 26

Practice objective / multiple choice question 26 from the 2017 Post Utme Osustech Commerce examination.

Post Utme Osustech 2017 Commerce Objective / Multiple Choice
Question 26 POST_UTME_OSUSTECH • 2017 • COMMERCE • objective

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

Answer Options

Correct Answer A. Process A, as it has a lower total cost.
B. Process B, as it has a lower fixed cost.
C. Process A, as it has a lower variable cost per unit.
D. Process B, as it has a lower total cost.
Correct Answer
A
Correct Option:
Process A, as it has a lower total cost.

About This Question

This is Post Utme Osustech 2017 Commerce Question 26. It is one of the objective questions from the 2017 Post Utme Osustech Commerce examination.

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