Question detail
PixelPrint serves business clients while changing promotion; the case evidence includes supplier lead time of ?10,308, sales of 878 units, and a 11% change in costs or demand. Which option best applies Calculate and interpret average unit costs?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Expanding a business
Question
- A. Use average unit cost to judge labour productivity, customers impact, and the business objective in Economies and diseconomies of scale.
- B. Give only a definition of Expanding a business without using the case evidence.
- C. Treat efficiency and productivity as identical and ignore the effect on customers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use average unit cost to judge labour productivity, customers impact, and the business objective in Economies and diseconomies of scale.
Explanation
This option works because Use average unit cost to judge labour productivity, customers impact, and the business objective in Economies and diseconomies of scale. The case evidence gives ?11,808, 878 units, and 11%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse efficiency and productivity, miss the customers, or ignore the business objective.
Common mistake
Economies and diseconomies of scale common mistake 1
Giving a vague answer instead of directly addressing: Calculate and interpret average unit costs..
Answer by clearly explaining how to calculate and interpret average unit costs..
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