Post Utme Ui 2025 Commerce Question 37

Practice objective / multiple choice question 37 from the 2025 Post Utme Ui Commerce examination.

Post Utme Ui 2025 Commerce Objective / Multiple Choice
Question 37 POST_UTME_UI • 2025 • COMMERCE • objective

A company is considering two different production processes for a new product. Process A requires an initial investment of ₦1,000,000 and produces 100 units of the product per day, while Process B requires an initial investment of ₦500,000 and produces 50 units of the product per day. If the company expects to produce the product for 5 years, which process should it choose?

Answer Options

A. Process A, because it produces more units of the product per day.
B. Process B, because it requires a lower initial investment.
C. Process A, because it has a higher total revenue over the 5-year period.
Correct Answer D. Process B, because it has a lower total cost over the 5-year period.
Correct Answer
D
Correct Option:
Process B, because it has a lower total cost over the 5-year period.

About This Question

This is Post Utme Ui 2025 Commerce Question 37. It is one of the objective questions from the 2025 Post Utme Ui Commerce examination.

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