Post Utme Summit University 2021 Commerce Question 35

Practice objective / multiple choice question 35 from the 2021 Post Utme Summit University Commerce examination.

Post Utme Summit University 2021 Commerce Objective / Multiple Choice
Question 35 POST_UTME_SUMMIT_UNIVERSITY • 2021 • COMMERCE • objective

A company is considering two different production processes: Process A and Process B. Process A involves a labor cost of ₦100,000 and a capital cost of ₦200,000, while Process B involves a labor cost of ₦150,000 and a capital cost of ₦100,000. Which process is more cost-effective?

Answer Options

Correct Answer A. Process A is more cost-effective.
B. Process B is more cost-effective.
C. Both processes are equally cost-effective.
D. Neither process is cost-effective.
Correct Answer
A
Correct Option:
Process A is more cost-effective.

About This Question

This is Post Utme Summit University 2021 Commerce Question 35. It is one of the objective questions from the 2021 Post Utme Summit University Commerce examination.

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