Post Utme Pan Atlantic University 2018 Commerce Question 7

Practice objective / multiple choice question 7 from the 2018 Post Utme Pan Atlantic University Commerce examination.

Post Utme Pan Atlantic University 2018 Commerce Objective / Multiple Choice
Question 7 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2018 • COMMERCE • objective

A company is considering two different production processes for its 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 company choose if it expects to produce 10,000 units?

Answer Options

Correct Answer A. Process A
B. Process B
C. It depends on the expected price of the product
D. Neither process is suitable
Correct Answer
A
Correct Option:
Process A

About This Question

This is Post Utme Pan Atlantic University 2018 Commerce Question 7. It is one of the objective questions from the 2018 Post Utme Pan Atlantic University Commerce examination.

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