Post Utme Redeemers University 2022 Commerce Question 34

Practice objective / multiple choice question 34 from the 2022 Post Utme Redeemers University Commerce examination.

Post Utme Redeemers University 2022 Commerce Objective / Multiple Choice
Question 34 POST_UTME_REDEEMERS_UNIVERSITY • 2022 • COMMERCE • objective

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

Answer Options

Correct Answer A. A product line with a high fixed cost and a low variable cost is a characteristic of a high-fixed-cost product line.
B. A product line with a high fixed cost and a low variable cost is a characteristic of a low-fixed-cost product line.
C. A product line with a high fixed cost and a low variable cost is a characteristic of a high-variable-cost product line.
D. A product line with a high fixed cost and a low variable cost is a characteristic of a low-variable-cost product line.
Correct Answer
A
Correct Option:
A product line with a high fixed cost and a low variable cost is a characteristic of a high-fixed-cost product line.

About This Question

This is Post Utme Redeemers University 2022 Commerce Question 34. It is one of the objective questions from the 2022 Post Utme Redeemers University Commerce examination.

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