Post Utme Rhema University 2018 Commerce Question 15

Practice objective / multiple choice question 15 from the 2018 Post Utme Rhema University Commerce examination.

Post Utme Rhema University 2018 Commerce Objective / Multiple Choice
Question 15 POST_UTME_RHEMA_UNIVERSITY • 2018 • COMMERCE • objective

A company is considering two different inventory management systems for its new product. System A involves a high upfront cost but low ongoing costs, while System B involves low upfront cost but high ongoing costs. If the company expects to sell 10,000 units in the first year and 20,000 units in the second year, which inventory management system should it choose if it wants to minimize its total costs?

Answer Options

Correct Answer A. System A
B. System B
C. System C
D. System D
Correct Answer
A
Correct Option:
System A

About This Question

This is Post Utme Rhema University 2018 Commerce Question 15. It is one of the objective questions from the 2018 Post Utme Rhema University Commerce examination.

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